A Dozen of World’s Largest Banks Invest in Blockchain Digital Cash System ‘Fnality’, A Ripple Rival?
- Fnality will be a new platform to promote a “utility settlement coin.”
- Most banks have not announced their participation at this current stage, apart from Barclays.
The cryptocurrency market is no stranger to competition. One of the most competitive companies in the space has easily been Ripple, who consistently has launched new endeavors and projects to expand its reach. However, it is possible that the company is going to need to improve its strategy because there’s a new group entering the market. This group, according to reports from Reuters, is made up of a few of the largest banks in the world.
This group of banks is starting with a $50 million investment, which is being used for the creation of a digital cash system on a blockchain-based platform. The platform will be used for the settlement of various financial transactions, according to sources that are familiar with this new endeavor.
Though the project has only recently been made publicized, it is being called a “utility settlement coin,” which was first introduced by UBS Group AG of Switzerland and the Clearmatics tech startup in 2015. The project’s purpose has been to improve the efficiency of clearing and settlements in the financial market. A new entity called Fnality has been created to run the project, and there’s already about a dozen banks already investing.
So far, the deal isn’t actually complete, so anything could change at this point. If the company keeps all of their current plans intact, the individual who spoke with Reuters said that the launch will happen by the end of next year. Furthermore, the names of the banks have yet to be released for the investments either.
Formerly, there were some banks that announced their participation in earlier rounds of development, including UBS, Banco Santander, Deutsche Bank AG, Bank of New York Mellon Corp, HSBC Holdings Plx, State Street Corp, Barclays PLC, and Credit Suisse Group AG. In a written statement, a spokeswoman for Barclays confirmed that they are part of “the USC Project,” and added that the project has almost competed the Research & Development stage. So far, the other banks haven’t commented.
Even though the banks haven’t commented on their involvement, they have started their own projects as well. Santander, for example, has been in the news for their use of Ripple, which has led some rumors to fly that Ripple is involved with this matter as well. However, if they were involved, CCN points out that Ripple could lose some clients if their participation was announced.
The proponents of Ripple have been fairly vocal about the mass adoption of their platform and the XRP token XRP 2.46, saying that it is ultimately inevitable. Still, there’s networks around the world opening up, which means Ripple will be faced with competition instead of an easy victory.
XRP’s price is $0.25 XRP/USD exchange rate today. The real-time XRP market cap of $10.67 Billion currently ranks #4 with , daily trading volume of $186.84 Million and live coin value change of XRP 2.46 in the last 24 hours.