Pioneering Research Explores Blockchain for Financial Settlements

Major Financial Players Investigate Blockchain Potential

Leading institutions such as Citi, JPMorgan, Mastercard, Swift, and Deloitte are collaborating on a research initiative dubbed the Regulated Settlement Network (RSN), which examines the feasibility of a shared ledger to facilitate multiasset transactions. This project is in PoC stage and eyes the union of commercial-bank and central-bank money with securities on a regulated platform.

Technical Insights and Controversies

The New York Innovation Center of the Federal Reserve Bank of New York is engaged as a technical observer, aiming to integrate digital assets into regulated financial market infrastructures. Despite privacy concerns and political debates surrounding Central Bank Digital Currencies (CBDCs) in the US, the RSN project moves ahead, signaling no direct commitment to subsequent research phases post-initial findings.

A Step Towards Frictionless Settlements

Raj Dhamodharan of Mastercard comments on the transformative potential of shared ledger technology for dollar settlements, envisioning a future with continuous, seamless programmable settlements. The project, steered by the Securities Industry and Financial Markets Association (SIFMA), encompasses other notable participants and intends to publish its findings upon completion.