Four largest banks in the world are collaborating to develop a new form of digital cash, which they believe will become an industry standard to clear and settle financial trades over blockchain. The four banks are UBS, Deutsche Bank, Banco Santander and BNY Mellon. These banks are also joined by brokerage firm ICAP and they are expected to broach the idea to central banks with an intention to launch the system by 2018. These banks strongly believe blockchain technology will harness the power of decentralized computer networks and improve the efficiency of financial market plumbing. Though most of the banks were skeptical about blockchain technology because of worries over fraud, they are now exploring how they can exploit the technology to speed up back-office settlement systems and free billions in capital tied up supporting trades on global markets.
