A group of major companies, including Citi, JPMorgan, Mastercard, Swift, and Deloitte, are collaborating to explore the potential of shared ledger technology. The aim of this collaborative effort is to simulate multiasset transactions in U.S. dollars and bring 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 will serve 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. The participants in the program are not obligated to continue with further research after the initial phase, but 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 the potential for shared ledger technology to revolutionize dollar settlements, 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
