A group of major companies including Citi, JPMorgan, Mastercard, Swift, and Deloitte are collaborating to investigate the potential of shared ledger technology. The Regulated Settlement Network (RSN) proof-of-concept (PoC) project aims to simulate multiasset transactions in U.S. dollars by bringing together commercial-bank money, wholesale central-bank money, and securities such as 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 the participants in the program are not obligated to continue with further research after the initial phase, they remain focused 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 the potential for shared ledger technology to revolutionize dollar settlements by making them programmable, 24/7, and frictionless. The Securities Industry and Financial Markets Association (SIFMA) will oversee the management of the program with additional participants like TD Bank N.A., U.S. Bank, USDF, Wells Fargo, Visa, and Zions Bancorp involved in collaboration once it is completed.
The goal of this project is to explore how shared ledger technology can be used to improve efficiency and security within traditional financial systems while also enabling new business models and opportunities in areas such as digital currencies and smart contracts.
Overall, this collaborative effort represents a significant step forward in exploring how shared ledger technology can be used within traditional financial systems while also creating new opportunities for innovation and growth in the digital economy.
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