Power Players Unite to Explore the Potential of Shared Ledger Technology in the US Financial System

Major corporations, including Citi, JPMorgan, Mastercard, Swift, and Deloitte, are joining forces to explore the potential of shared ledger technology. The collaborative effort aims to simulate multi-asset transactions in U.S. dollars through a research project known as the Regulated Settlement Network (RSN) proof-of-concept (PoC). The project will investigate the possibility of bringing together commercial bank money, wholesale central bank money, and securities like U.S. Treasuries and investment-grade debt in a regulated setting.

The Federal Reserve Bank of New York’s New York Innovation Center is serving as a technical observer for the project. Debopama Sen, global head of payments at Citi Services, expressed excitement about the opportunities that this project presents in the digital economy. While participants in the program are not obligated to continue with further research after the initial phase, the focus remains on establishing consensus on the use of shared ledger technology within the U.S financial system.

Raj Dhamodharan, executive vice president for blockchain and digital assets at Mastercard, highlighted how shared ledger technology could revolutionize dollar settlements by making them programmable 24/7 and frictionless. The Securities Industry and Financial Markets Association (SIFMA) is overseeing the management of the program with additional participants such as TD Bank N.A., U.S Bank, USDF, Wells Fargo Visa and Zions Bancorp involved in collaboration once research findings are published to further our understanding of shared ledger technology’s role in financial services sector.