Kiffmeister’s #Fintech Daily Digest (20220322)

BIS Innovation Hub and four central banks develop experimental multi-CBDC platform for cross-border settlements

The Singapore branch of the Bank for International Settlements (BIS) Innovation Hub, the Reserve Bank of Australia, Bank Negara Malaysia, the Monetary Authority of Singapore, and the South African Reserve Bank have completed prototypes for a common cross-border payments platform using multiple central bank digital currencies (mCBDCs). Project Dunbar proved that financial institutions could use CBDCs issued by participating central banks to transact directly with each other on a shared platform. This has the potential to reduce reliance on intermediaries and, correspondingly, the costs and time taken to process cross-border transactions. [Read more]

Euroclear invests in Fnality, blockchain-based synthetic CBDC

Euroclear has invested in Fnality, the blockchain payments consortium formerly known as the Utility Settlement Coin (USC) and owned by 16 major financial institutions. Euroclear operates Central Securities Depositories (CSDs) across Europe, including Belgium, Finland, France, Ireland, the Netherlands, Sweden, and the United Kingdom. In October, Fnality plans to launch its first payment currency with pounds sterling deposited at the Bank of England. That makes it a so-called wholesale synthetic CBDC where the purpose is for institutions to use it for settlement, especially for blockchain-based transactions. [Read more]

Galaxy digital facilitates Goldman Sachs’s first OTC crypto options trade

Galaxy Digital facilitated and executed the first over-the-counter (OTC) crypto-asset transaction with Goldman Sachs in the form of a Bitcoin cash-settled non-deliverable option (NDO), apparently the first such transaction by a major U.S. bank. [Read more]