JP Morgan, Visa, Citi Explore Multi-Asset Settlement On Shared Ledger

A variety of leading financial services companies in the US – such as Visa, JP Morgan, and Citi – are participating in a Regulated Settlement Network (RSN) proof-of-concept. The purpose of this initiative is to investigate multi-asset settlement utilizing shared ledger technology.

The PoC is directed by regulatory authority Sifma, with involvement from TD Bank, Mastercard, and Swift. It will explore how distributed ledger technology can be utilized in settling US Treasury securities, wholesale central bank deposits, tokenized commercial bank money, and other virtual assets.

The Initiative Aims To Enable 24/7 Programmable Settlements

The idea is to create an interoperable blockchain for multi-asset operations that intends to function on a 24/7, programmable joint ledger. Leveraging the outcomes of an earlier industry PoC, this initiative will continue to investigate the settlement of securities and digitized currency on a unified platform. The RSN PoC will be carried out in a test setting and will imitate multi-asset dealings in US dollars.

The Managing Director at Sifma, Charles de Simone, added that this evaluation of shared ledger technology underscores the significance of exploring advancements in digital representations of securities and USD cash. Market members keep pushing boundaries to maintain resilient and efficient capital markets.

Results from the PoC will be disclosed, although participants have not made any promises regarding future research efforts.

The Integration Seeks To Unlock The Next Generation Of Market Platforms

Raj Dhamodharan, Executive Vice President of digital assets and blockchain at Mastercard, stated that the integration of joint ledger technology into dollar settlements might unlock the upcoming generation of market platforms. Settlements in these platforms would be programmable and operate non-stop, with little to no friction.

The Securities Industry and Financial Markets Association (SIFMA) is a U.S.-based industry trade body representing asset management firms, banks, and security companies. SIFMA was founded on November 1, 2006, through the amalgamation of the Securities Industry Association and the Bond Market Association. It has branches in Washington, D.C., and New York City.

The joint ventures of SIFMA’s bank, asset management associates, and broker-dealer comprise 75% of the revenue in the U.S. broker-dealer industry. It also represents 50% of the investment management industry in terms of assets managed.

Presently, the association advocates for the sector’s 1 million staff, catering to clients. It oversees over $185 trillion in assets and administers over $67 trillion in assets for institutional and individual clients.

Following the 2006 merger that formed SIFMA, the association adopted a co-chief Executive Officer framework, with BMA’s Micah S. Green and Marc E. holding the positions jointly.