UK Finance Expands Trial of Shared Ledger for Financial Transactions
UK Finance, a representative body for the UK banking and financial sector, plans to expand its trial of a shared ledger system to track financial transactions among firms.
The pilot aims to address some of the gaps in the emerging crypto landscape. Major players in banking and finance, including Barclays, Lloyds Banking Group, Citigroup, Mastercard, and Visa, have already joined the pilot phase.
Led by Quant, a provider of interoperable blockchain networks, the pilot has been ongoing for two months and is set to conclude in August. UK Finance aims to release the results of this trial by then.
This initiative signifies a significant step towards establishing a commercial system for tokenized deposits and securities that can be adopted by all banks. It follows recommendations from the UK government’s Technology Working Group to collaborate towards tokenization objectives.
The move aligns with broader efforts to unify monetary systems globally. The Bank for International Settlements (BIS) recently launched Project Agorá, involving central banks and the private sector to enhance the monetary system through tokenization and smart contracts.
READ MORE: Germany’s Largest Federal Bank to Offer Crypto Custody Services
Tokenized deposits facilitated by UK Finance’s initiative are expected to streamline transactions across borders and systems, reducing errors and fraud. While the trial platform won’t be commercialized immediately, participating firms will test it for two to three years before potential commercial deployment.
Starting in July, UK Finance will invite fintech startups and tech firms to join the program, enabling them to develop and test new products based on tokenized bank money. This move reflects banks’ recognition of the need for programmable payments, which can enhance operational efficiency, according to industry experts.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
