According to PANews, several major U.S. financial institutions are working together to test the advantages of shared ledger technology for joint settlement of tokenized assets, such as commercial bank funds and various securities. The initiative, called the "Regulatory Settlement Network," is a proof of concept that aims to speed up and secure cross-border transactions by using a single tokenized asset system.
The trial is a continuation of an earlier 12-week experiment conducted at the end of 2022, which focused on interbank and cross-border U.S. dollar transactions. Participants in the new phase include well-known financial institutions such as Mastercard, Citigroup, JPMorgan Chase, U.S. Bancorp, Wells Fargo, Visa, Swift, TD Bank and Zions Bancorp. The project is overseen by the New York Innovation Center of the Federal Reserve Bank of New York to ensure a comprehensive review of the potential of the technology.