UBS’ Blockchain-Based ‘Digital Coin’ Gains Funds Raised by Partner Clearmatics

Journalist:
November 18, 2015

The utility settlement coin developed by Switzerland-based UBS in partnership with Clearmatics Technologies has gained its first round of funding thanks to UK-based Clearmatics.

The initiative to link real-world fiat currencies with central bank accounts through a ‘settlement coin’ gained traction after Clearmatics completed its first round of funding. The blockchain-based settlement coin, dubbed ‘digital coin’ is seen as a means to help establish the block chain in global finance and change the global payment system.

As reported by Bloomberg, investors include Nyca Partners, Route 66 Ventures LLC and Tellurian Capital Management, among others.

Clearmatics founder and CEO Robert Sams said:

Our investors understand the disruptive potential of Clearmatics’ solutions and are very actively helping us extend our relationships with key institutional players.

The ‘Digital coin’ is being developed in partnership with London-based Clearmatics, a firm developing next-generation clearing machines for over-the-counter (OTC) markets. The currency is expected to help with cross-border payments and bring settlement times for transactions down to seconds, compared to conventional methods that routinely take multiple days.

Also read: UBS Develops ‘Settlement Coin,’ Bringing Block Chain To Financial Markets

UBS, a Swiss bank commonly seen as the predominant money manager in the world for the rich has chosen an in-house development route by setting up a fintech lab with a team of specialists in
Level39 at London’s Canary Wharf. This team is led by Alex Batlin, a computer scientist who is also working with the Ethereum foundation to develop ‘smart contracts,’ that automatically execute commercial agreements.

According to UBS’ chief technology officer Oliver Bussman, the bank has already identified over 20 applications for blockchain technology as a decentralized, efficient, quick-transacting ledger. He notes 2016 as the year for blockchain to have a breakthrough in real-world applications while estimating two or three more years before the technology is adopted widely.

UBS’ global co-head of currencies, Chris Murphy contends blockchain to usher in comprehensive changes to retail banking. Additionally, he claims bitcoin- and blockchain-based startups are still figuring out applications of the technology for real-world problems.

Many of these start-ups have interesting ideas but some don’t quite know how to apply it to real-world business problems. The way we’re thinking about engaging is very much a partnership, where we offer them some advice on the application of their technology but leave development to them.

Images from Shutterstock.

Tags: ubs
Samburaj Das @sambdas

Samburaj is the Editor for CCN, among the earliest and foremost publications covering financial and blockchain news. He has authored over 2,000 articles for CCN. Email him samburaj(@)ccn.com or find him barely tweeting @sambdas