The USC or Utility Settlement Coin project, which is led by some of the largest banks in the world, announced that it is going to create a new firm and will close an accompanying £50 million or $63.2 million Series A financing round. The news has been revealed in one press release from yesterday, the 3rd of June.
The purpose of the USC project or platform
As it was previously reported, the USC platform has the mission to facilitate the issuance of currencies based on blockchain in the central and commercial banking sector around the world.
According to the press release of yesterday, USC project partners are now the founding shareholders in one new firm which represents the commercial realization of the project, dubbed Fnality International.
They actually include some of the major banking players in the world: BNY Mellon, Banco Santander, Barclays, Commerzbank, CIBC, Credit Suisse, KBC Group, ING, Lloyds Banking Group, Nasdaq, MUFG, Sumitomo Mitsui Banking Corporation, UBS and State Street Corporation.
On what was USC R&D focused during the four years of development?
During those four years of development, the USC R&D project was reportedly focused on developing efficient solutions for the global cross border payments in the future context of the tokenized wholesale markets. The project even has the purpose of finding some ways to reduce settlement, counterparty, as well as systematic risk in the post-trade settlement processes.
The press release also outlined that USC aspires to be the token which is 100% backed, as well as guaranteed at all times by a national fiat currency of the given central bank. For each jurisdiction, the solution of Fnality is going to ensure that the settlement is actually achieved in the compliance with the local settlement finality regulations and laws.
The R&D work was also led to the creation, as well as the forthcoming deployment of new solutions which addressed legal, operational, technical, and regulatory issues, and is going to establish a regulated network of the distributed Financial Market Infrastructures or dfMIs which support the international exchange of the value transactions.
Supporting the five national fiat currencies
Initially, the five national fiat currencies are about to be promoted, which are EUR, GRP, CAD, JPY, and USD, with some further currencies also to be added in the future.
The USC project has other purposes, such as innovating settlement and clearing processes, facilitating Delivery vs. Payment, in the tokenized securities markets, and to enable immediate settlement on a Payment vs. Payment basis within the secured funding market, according to the press release.
In one interview, the CEO of Fnality, named Rhomaios Ram, said that he expects the USC token is going to be entirely operational within twelve months once regulatory approval was secured.
The largest bank of the United States, the JP Morgan Chase or JPM, this year unveiled its own stablecoin, powered by blockchain and focused on settlement, called JPM Coin.