Major companies in the financial services industry, including Citi, JPMorgan, Mastercard, Swift, and Deloitte, are collaborating to investigate the potential of using shared ledger technology in the US financial system. The Regulated Settlement Network (RSN) proof-of-concept (PoC) project is focused on bringing commercial bank money, wholesale central bank money, and securities like U.S. Treasuries and investment-grade debt to a common regulated venue.
The New York Innovation Center of the Federal Reserve Bank of New York is serving as a technical observer for the project. Debopama Sen, global head of payments at Citi Services, expressed excitement about the opportunities this project presents for Citi in the digital economy. However, it’s important to note that participants in the program are not obligated to commit to any future phases of research after the initial phase is completed.
The collaboration between these companies aims to reach a consensus on the use of shared ledger technology within the US financial system. The findings from this research will be published once the project is concluded. Raj Dhamodharan, executive vice president for blockchain and digital assets at Mastercard, believes that utilizing shared ledger technology for dollar settlements could lead to a new generation of market infrastructures with 24/7 programmable settlements that are frictionless.
The Securities Industry and Financial Markets Association (SIFMA) is managing this research project which includes participation from other companies such as TD Bank N.A., U.S. Bank, USDF, Wells Fargo, Visa and Zions Bancorp. This research project aims to explore the potential benefits and challenges of using shared ledger technology in the financial industry.
Overall, this collaboration represents an exciting opportunity for these major companies to explore how shared ledger technology can transform traditional banking systems and create new opportunities for growth and innovation in
