Goldman Sachs

Goldman Sachs Files Patent For Securities Settlement With Cryptocurrency

Goldman SachsGoldman Sachs image has filed a patent application for a cryptographic currency called SETL Coin to be used for securities settlement. The application, which signifies the New York-based global bank’s growing interest in cryptocurrency, has been filed with the U.S. Patent & Trade Mark office. Paul Walker and Phil J. Venables, both of New York, N.Y., are listed as the inventors.

The technology provides a virtual, multi-asset wallet for a traditional cash and securities account for an investor or trader. The technology facilitates transactions between non-virtual wallets and a virtual wallet and vice versa on the same peer-to-peer network.

A trader using the wallet no longer trades securities by meeting at an exchange and indicating cash for security and bearing the associated credit risk while settling the transaction, which can take seconds, hours or days.

Immediate Transfer Of Funds

The technology presents an open transaction on the funds in their respective wallets. The SETL coin ownership transfers immediately to the new owner upon verification and authentication based on the network ledgers within a peer-to-peer network. The technology guarantees “nearly instantaneous execution and settlement.”

The techniques can be implemented by circuitry configured or programmed by firmware, software, special-purpose circuitry or a combination of these. Special-purpose circuitry can take the form of one or more application-specific integrated circuits (ASICs), field-programmable gate arrays (FPGAs), programmable logic devices (PLDs), etc.

The currency protocol supports a virtual wallet that serves the functions normally associated with such a wallet; a security and cash account for managing and storing cryptocurrency.

Tailored To Security Transactions

Instead of representing a single, transferable item, the SETL coin wallet holds multiple positionable objects such as a security share that the application refers to as a positional item inside the cryptographic currency (PIC), and a position such as a quantity of PIC represented by the wallet.

The application gives the example of a stock market symbol of a company, IBM, which can be a PIC used by the network. An issuer can have multiple PICs to designate different types of securities.

The wallet is specifically for the settlement of securities.

The application notes that bitcoin is the first cryptocurrency to gain broad attention, followed by Litecoin, Novacoin, Namecoin, Feathercoin, Terracoin, Dogecoin and Peercoin.

Paul Walker is co-head of Goldman Sachs technology division and a member of the Partnership Committee and the Firmwide Technology Risk Committee. He is also a member of the board of directors of the Depository Trust and Clearing Corporation and the Board of Governors of the New York Academy of Sciences.

Phil Venables is managing director and CISO at Goldman Sachs, according to LinkedIn.

Also read: New bitcoin derivatives brokerage launched by ex-Goldman Sachs director

Goldman Continues To Invest In Cyrpto

In April, Goldman Sachs and China-based IDG Capital Partners led a $50 million strategic investment in Circle Internet Financial, giving Circle customers the ability to hold, receive and send U.S. dollars and bitcoin securely, instantly and with no fees. It also gave customers the benefits of the bitcoin network without price volatility risk. Circle is an Internet company focused on transforming the global economy with technology for storing and using money.

Circle Internet Financial was the first company to receive a New York State BitLicense, allowing it to provide digital currency services in New York State.

Tom Jessop, managing director for Goldman Sachs Principal Strategic Investments Group, said at the time that the financial services industry is becoming more digital and open. He said the company sees significant opportunities in solutions and companies that promise to transform global markets via technical innovation.

Sourced from Bitcoin Magazine.

Featured image of Goldman Sachs Tower from Shutterstock. Goldman Sachs logo from Goldman Sachs/Twitter.