UBS steps closer to rolling out digital currency

UBS has teamed up with four financial partners to test a new digital currency that could improve trading efficiency using blockchain technology. The Utility Settlement Coin (UTS) could be in operation within two years if it receives regulatory approval. Switzerland’s largest bank started work on the project last autumn with British-based financial technology company Clearmatics. Three international banks – BNY Mellon, Santander and Deutsche Bank – plus brokerage firm ICAP have now joined forces with UBS to push it onto the market. Before that can happen, the project will have to clear the important hurdle of regulatory approval. The consortium is currently lobbying regulators and central banks to allow trading using the digital currency. One of the arguments being used is that security will be improved given the transparency of blockchain. UTS backers are convinced of the benefits of using the digital currency to trade anything from securities, derivatives, bonds ...