With so many companies exploring the world of blockchain technology, interest from investors keeps on growing month over month. Clearmatics Technologies, a company, based in London and partner of UBS Group AG, wants to adapt blockchain technology to redesign the global payment system. Among the first round of funding were some notable investors, including big names who previously invested in other Blockchain companies.
Utility Settlement Coin – Big Market For Blockchain Technology
The partnership between UBS – one of the world’s largest banks – and Clearmatics Technologies was originally announced in September of 2015. At that time, it seemed strange for a Swiss banking giant to partner with a company developing blockchain technology applications, but this decision was not made overnight. Clearmatics had been working on a concept they would call “utility settlement coin”, which would allow internal bankchains to talk to each other, without direct connection.
It is no secret the settlement market is one of the most prone sectors of finance to be disrupted sooner rather than later; Reducing settlement times and counterparty risk will play an important role in the financial landscape of the future. A global settlement standard is needed, and blockchain technology will be the platform enabling this feature to be developed.
While many Bitcoin industry experts feel every aspect of finance needs to be disrupted at the same time, it only takes one small block to start the domino effect. Foreign currency settlement risk is one of the biggest threats to the “financial health” of a bank, and reducing this risk factor will be a key selling point for blockchain-based solutions.
Also, the level of transparency and reduced risk of counterfeit provide additional layers of security and accountability that are impossible to achieve under the current system. Blockchain technology can provide future innovations of value to the banking sector, such as smart contracts, multisignature wallets.
A Major Boon For Clearmatics Technologies and UBS
Up until this point, very few people had heard the name Clearmatics Technologies before. It is not hard to lose track of every company exploring the boundaries of blockchain technology in the financial sector. Furthermore, very few financial institutions will reveal which company they are working with to develop in-house blockchain solutions.
Clearmatics Technologies Founder and CEO was a hedge fund manager and macro specialist with a strong focus on a central bank policy. In most cases, the people involved in the intrinsic network of central banking are among the first ones to advocate for blockchain technology.
What are your thoughts on this concept by Clearmatics Technologies and UBS? Will it be successful in your opinion? Let us know in the comments below!
Images courtesy of Clearmatics Technologies, UBS, Shutterstock