Euroclear joins bank-backed blockchain payment system – Reuters.com

Night shot of illuminated city business district in Brussels, Belgium August 13, 2017. REUTERS/Eric Vidal
LONDON, March 21 (Reuters) – Securities settlement house Euroclear said on Monday it had joined a consortium of banks building a payment system for tokenised assets in the latest sign of established institutions teaming up with newcomers in crypto tech.
Belgium-headquartered Euroclear said it had bought a small stake in the three-year old consortium Fnality as it moves deeper into distributed ledger technology (DLT) or blockchain, the technology which underpins cryptoassets like bitcoin.
Euroclear which settles stock and bond trades, the final leg of a transaction where cash is swapped for legal ownership of an asset, said the aim was to settle tokenised assets, or digital securities, against digital cash on DLT in a faster and more efficient way.
Fnality, whose founding shareholders include more than a dozen global banks, said Euroclear's involvement would expand the consortium's footprint in market infrastructure, the financial system's basic plumbing, as it moves from testing to implementing its plan this year.
"This has obvious positive implications for the execution of our business," Fnality Chief Executive Rhomaios Ram said in a statement.
Fnality aims to replace some of the cumbersome processes and paperwork involved in transferring value between financial organisations by using digital versions of currencies.
The Bank of England gave the green light last year to a new type of account at the central bank to cater for a wider range of anticipated payments systems, including those based on blockchain.
Fnality submitted an application to the BoE to become an operator of such an account and is due to go live with its pound sterling payment system in October.
Euroclear, which settled the equivalent of 992 trillion euros ($1,095 trillion) in securities last year, is owned by a group of banks and exchanges, including Euronext (ENX.PA) and the London Stock Exchange Group .
Fnality's founding shareholders include Banco Santander (SAN.MC), BNY Mellon (BK.N), Barclays (BARC.L), CIBC (CM.TO), Commerzbank (CBKG.DE), Credit Suisse (CSGN.S), ING (INGA.AS), KBC Group (KBC.BR), Lloyds Banking Group , Mizuho Bank (8411.T), MUFG Bank (8306.T), Nasdaq (NDAQ.O), State Street Corporation (STT.N), Sumitomo Mitsui Banking Corporation (8316.T) and UBS (UBSG.S).
($1 = 0.9062 euros)
Our Standards: The Thomson Reuters Trust Principles.
Sign up to our investor newsletter to get the latest news and trends in global financial markets.
Subscribe to our newsletter to get all the news you need to start your day.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved

source