Bank of America explores blockchain! Citi, JPMorgan Chase and others join hands to test tokenized asset settlement platform

The U.S. Securities Industry and Financial Markets Association (SIFMA) issued a press release yesterday (8th) stating that including Citibank, JPMorgan Chase, Mastercard, Deloitte...etc. A number of American financial giants are joining forces to use distributed ledger technology to explore centralized settlement of multiple types of assets on a single platform.

Regulated Settlement Network (RSN) Proof of Concept (PoC) Plan

SIFMA pointed out that in the current financial system, assets such as commercial bank funds, U.S. Treasury bonds and other investment securities, All run in different systems. In response to this situation, American financial giants have introduced a plan called "Regulated Settlement Network (RSN) Proof of Concept (PoC)", aiming to convert various tokenized assets Introducing an interoperable network for multi-asset transactions for centralized settlement: RSNPoC envisions an interoperable network for multi-asset transactions, aiming to provide an all-weather, programmable decentralized ledger to integrate various types of Monetized assets are settled centrally.

In addition, SIFMA also added that RSNPoC will be conducted in a test environment and will simulate multi-asset transactions in US dollars.

Mastercard: Unlocking next-generation infrastructure for financial market development

In this regard, Raj Dhamodharan, director of blockchain and digital assets at payment giant Mastercard, said: Apply shared ledger technology to U.S. dollar settlements It can unlock the next generation of infrastructure for financial market development, so that the transaction process is 24/7 and frictionless. The project can improve the efficiency of cross-border settlements and reduce opportunities for errors and fraud.

At the same time, Debopama Sen, Citibank’s global head of payments, also said: A key element of the tokenization theory is the potential to establish a more universal place for financial transaction settlement. In today’s digital economy, financial markets Infrastructure may be required to settle large amounts of digital assets within a well-defined legal framework.

Various banking giants have cooperated in the digital dollar pilot

In fact, this is not the first cooperation of these banks and financial institutions. At the end of 2022, including the Federal Reserve Bank of New York and the Bank of New York Mellon , Citibank, HSBC, Mastercard... and many other banking giants have cooperated to launch a 12-week digital dollar proof-of-concept (PoC) program.

The New York Fed’s Innovation Center (NYIC) pointed out that the plan aims to explore the interoperability network of wholesale central bank digital currency (i.e. wholesale digital dollar) and commercial bank digital currency in a shared multi-entity decentralized Viability to run on the ledger: RLN provides a multi-asset, always-on, programmable infrastructure containing digital representations of central bank, commercial bank and regulated non-bank issuer liabilities denominated in U.S. dollars.

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