To compete with bitcoin, six of the world’s largest banks are teaming up to create a new cryptocurrency.
Created by UBS, the “utility settlement coin” will be mostly used for clearing and settling transactions over blockchain technology, which cryptocurrency such as bitcoin and ethereum operate under. It will also allow for Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG, and State Street—who will work on the digital currency—to pay each other or buy securities without any waiting period for traditional money transfers, reducing the time and cost of post-trade settlement and clearing.
Cryptocurrency has been growing dramatically throughout the year, for example, bitcoin’s value has grown from just under $1000 per coin to its current standing at $4,748.10, according to CoinDesk. Ethereum, the number two cryptocurrency, is at nearly $400 per coin.
On August 1, bitcoin split into a second currency, bitcoin cash, causing the crypto king’s prices to surge more than $2,000 in just 30 days.
According to the Financial Times, the utility settlement coin is scheduled to launch next year.