What is utility settlement coin?
What does the U stand for in USC?
Can you do this enterprise stuff without having cash on the ledger?
Is USC commercial money?
What is utility settlement coin?
The Utility Settlement Coin initiative will tokenise fiat currencies on an Ethereum-based blockchain addressing the ‘cash on a ledger’ problem and potentially transforming the post-trade process, and , most importantly, banks are throwing their money behind it.
What does the U stand for in USC?
By Jon Watkins. The ‘U’ in USC may stand for utility, but it has been the word ‘unique’ that has been thrown around far more than the official component of the acronym when describing this new highly-touted, blockchain-driven payments initiative. Whether the word gets overused as a superlative for innovation or not is up for debate, ...
Can you do this enterprise stuff without having cash on the ledger?
As one source added: “You can’t do this enterprise stuff without having cash on the ledger.”
Is USC commercial money?
By taking a collaborative route, USC could enable instantaneous settlement, along with removing counterparty risk. Despite the USC being commercial money, it will have the characteristics of central bank money. The central bank element is interesting and crucial to the project as is the interoperability element, servicing different types of business, plugging into any form of exchange.
The Settlement problem
When it comes to international and inter-bank transactions, the time of settlement is high which holds up the transactions. Even the slow settlement times of credit card transactions fall under this category. Slow settlement times amount to loss of value of transactions due to holding up of the money.
Settlement Coin
UBS’ Blockchain based “Utility Settlement Coin” is all set to be the next interbank cryptocurrency for quick settlements. BNY Mellon, Deutsche Bank, ICAP and Santander have backed the setup. These banks are more likely to implement it upon a shared common protocol agreed upon.
The advantages
The advantages are centered not only around the quick transfers but also quick conversions to local fiat currencies. The banks’ cryptocurrency or tokens could be linked to established national fiat currencies (EUR,GBP, USD, YEN…) to facilitate easy conversion.
What is utility settlement coin?
The Utility Settlement Coin initiative will tokenise fiat currencies on an Ethereum-based blockchain addressing the ‘cash on a ledger’ problem and potentially transforming the post-trade process, and , most importantly, banks are throwing their money behind it.
What does the U stand for in USC?
By Jon Watkins. The ‘U’ in USC may stand for utility, but it has been the word ‘unique’ that has been thrown around far more than the official component of the acronym when describing this new highly-touted, blockchain-driven payments initiative. Whether the word gets overused as a superlative for innovation or not is up for debate, ...
Can you do this enterprise stuff without having cash on the ledger?
As one source added: “You can’t do this enterprise stuff without having cash on the ledger.”
Is USC commercial money?
By taking a collaborative route, USC could enable instantaneous settlement, along with removing counterparty risk. Despite the USC being commercial money, it will have the characteristics of central bank money. The central bank element is interesting and crucial to the project as is the interoperability element, servicing different types of business, plugging into any form of exchange.