In the last couple of months, banks and financial institutions have shown a growing interest towards bitcoin and its underlying system, the blockchain.
According to recent reports, it seems like Goldman Sachs has gone ahead and developed its own cryptocurrency, meant for a settlement system that wants to make trading stocks, bonds alongside with other assets much faster.
Based on the recently published patent filing, it seems like the New York-based giant initiated their patent application last year, for a digital currency named SETLCoin. The cryptocurrency is meant to make it easier for investors to trade securities, hence eliminating the gap between the moment when the trade is executed, and the actual delivery of the purchased securities.
In their applications, Goldman Sachs says that the new digital currency implemented into their system is bound to guarantee ‘nearly instantaneous execution and settlements’ for their trades.
So far, while trades can be executed instantly, it often takes days before the actual cash and securities are delivered to the investor, due to the settlement process, which brings in a great risk factor for both parties.
At this moment in time, a growing global consortium of banks is working alongside with blockchain start-ups, to implement the technology in global finance. However, the appearance of other digital currencies meant for this purpose show that banks aren’t necessarily interested in bitcoin, but rather in the blockchain.
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