Today the
Utility Settlement Coin project confirmed that it incorporated in the UK as Fnality International and raised a Series A of £50 million ($63m). Fourteen major international banks have backed the institutional stable coin project. Of note in today’s announcement is the changed set of banks. Previous members HSBC and Deutsche Bank did not participate in the funding, and there are several additions including Nasdaq.
Two weeks ago, Reuters reported a rumored fundraising and Ledger Insights explored some of the
pros and cons of the USC.
The USC will be an institutional digital currency. Initially there will be digital versions of five currencies Canadian Dollars, Euros, Pounds, Japanese Yen and US Dollars. The USC is for use by financial institutions (only) to make instant settlements. For example, stock and derivative trades could be settled almost immediately. Today there are large centralized clearinghouses that exist because payment is not instant, and hence the intermediary is needed to absorb the risk of a failed payment. The project aims to create a regulated “network of distributed Financial Market Infrastructures (dFMIs)”.
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