certify
Home arrow Article arrow Article Detail

New York Fed and Banks to Participate in Proof-of-Concept Project

Profile Image

Pavan A Follow

INDIA

Nov, 16 2022

Nov, 16 2022

likes | comments 0

Article Image

The Federal Reserve Bank of New York is collaborating with the banking community to advance the research into asset tokenization. An interoperable network of commercial banks and central bank wholesale digital money will be explored in a proof-of-concept project conducted by its New York Innovation Center (NYIC). 

 

In this 12-week proof-of-concept project, regulated liability networks will be explored. By transferring central bank liabilities, distributed ledger technology will be tested for its technical feasibility, legal viability, and business applicability for settling the liabilities of regulated financial institutions. 

 

The banks involved in the partnership include BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, and U.S. Bank. Financial messaging service provider Swift will facilitate interoperability throughout the international financial ecosystem. 

 

The Director of the New York Innovation Center, Per von Zelowitz said, "The NYIC looks forward to collaborating with members of the banking community to advance research on asset tokenization and the future of financial market infrastructures in the U.S. as money and banking evolve." 

 

Deloitte will provide advisory services and Sullivan & Cromwell LLP will provide legal services as part of the Regulated Liability Network (RLN) experiment. 

 

In this project, only simulation data will be used. Federal Reserve does not indicate whether or not a retail or wholesale CBDC will be issued, or how such a CBDC will be designed. After the pilot project ends, the findings will be released. 

  

A massive shift in the perception of digital currencies has been witnessed in the United States since the collapse of FTX. Despite this, traditional financial institutions have begun exploring digital currencies. US investors are now seeing digital currencies as a viable investment option, one that could potentially rival traditional investments such as stocks and bonds. 


likes | comments 0

Profile Image

Pavan A

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
NFL Announces Inaugural Super Bowl 'Metaverse' Concert on Roblox Platform

The NFL is taking a step into the future by hosting the first-ever virtual Super Bowl concert on the massively popular online gaming platform, Roblox. Set to take place during Super Bowl weekend...;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.