Banks Further Embrace Blockchain

We have covered in the past how cross-border payments are ripe for disruption. They are generally slow, inefficient and done in an antiquated manner. Some fintech firms like Ripple have proposed a blockchain alternative, and it seems some banks would agree on that concept... except they want to create their own. Swiss bank UBS led a $63.2-million funding round, featuring several other financial institutions as well, into blockchain firm Fnality International. The company was created by the 14 firms involved in the investing round and is the culmination of a four-year project by UBS to create a new digital token called the utility settlement coin, or USC. The token would be used to settle cross-border trades, and act as both as a payment device and messenger that carries all the information required to complete a trade. It’s another small step, but a significant one, in the acceptance of blockchain technology by financial firms.