According to a report from CoinDesk, several financial institutions, including Citibank, JPMorgan, Mastercard, SWIFT, and Deloitte, are collaborating to explore the potential of distributed ledger technology through the simulation of multi-asset transactions denominated in US dollars.
The project, called the Regulated Settlement Network (RSN) Proof of Concept (PoC), aims to explore the possibility of introducing commercial bank money, wholesale central bank money, and securities (such as US Treasuries and investment-grade bonds) into a common regulated venue. The Securities Industry and Financial Markets Association (SIFMA) is responsible for managing this project and stated in a press release that, “a key element of the tokenization theory is the potential to establish more universal venues for the settlement of financial transactions in today’s digital economy within a defined legal framework.”
Debopama Sen, Global Head of Citi’s Global Payments Services, expressed in the press release, “In today’s digital economy, the financial market infrastructure may need to settle a large number of digital assets within a defined legal framework.”
Raj Dhamodharan, Executive Vice President of Blockchain and Digital Asset Execution at Mastercard, added, “This project includes other participating institutions such as TD Bank N.A., U.S. Bank, USDF, Wells Fargo, Visa, and Zions Bancorp. The Federal Reserve Bank of New York’s Innovation Center will serve as a technical observer. The press release mentioned that the participants have not committed to any future research phases after the completion of the first stage. The focus of this collaboration is to achieve further consensus on the application of distributed ledger technology in the US financial system. The research findings will be published after the project concludes.”
