Top Banks 'Investing $50 Million' to Build Blockchain Settlement System

Some of the world's biggest banks are said to be investing around $50 million to build a blockchain-based digital cash settlement system.

A Reuters report on Friday, citing "People familiar with the plans," said possibly a dozen unspecified banks are involved in the project.

The participating banks will reportedly be setting up a new entity called Fnality for the project, which could launch next year.

Back in 2015, Swiss banking giant UBS was said to be working.

On a cryptocurrency that would be "Linked to real-world currencies and connected to central bank accounts" along with blockchain startup Clearmatics.

Clearmatics seems to have filed a trademark application for the word "Fnality," according to information from trademark service Justia Trademarks.

Later, in August 2016, four other banks - BNY Mellon, ICAP, Deutsche Bank and Santander - joined UBS and Clearmatics on the "Utility settlement coin" project.

Clearmatics founder Robert Sams told CoinDesk at the time that USC is as a form of digital cash that is "Fully backed by cash assets at the central bank."

"We are a member of the USC Project and can confirm that the Research & Development phase is coming to an end."

The news comes soon after investment banking giant JPMorgan revealed.