UTILITY SETTLEMENT COIN ( A NEW CRYPTOCURRENCY)

Last month there was a business event that could be the future of cryptocurrencies,  the legitimization of the method that will transform it from a novelty cocktail party collectible like a stuffed bb-9E into a currency suitable for a Big Mac.

Six of the world’s largest banks led by UBS (NYSE:UBS) and some others that have signed on are teaming up to create and accept

 a utility settlement coin - a new cryptocurrency. It is supposed to be used for clearing and settling transactions over blockchain

 technology. Backed and promoted by Barclays (NYSE:BCS), Credit Suisse (NYSE:CS), Canadian Imperial Bank of Commerce (NYSE:CM), HSBC (NYSE:HSBC), MUFG (NYSE:MTU), and State Street (NYSE:STT), Deutsche Bank (NYSE:DB), Banco Santander (NYSE:SAN), BNY Mellon (NYSE:BK) and NEX (OTC:NEXGY) along with UBS, it will use the USC to settle securities transactions - paying each other for buying and selling securities without any waiting period for traditional money transfers.

An instant (nearly - there has to be an acknowledgement) settlement will reduce the time and cost of settling and clearing securities transactions. Not being subject to play money speculators (hard to imagine for Wall Street and its cronies, isn’t it?), the USC will have to maintain a relatively stable price/cost. It just wouldn’t work without stabilization, would it? I mean the Big Six will play with our money, but take a multi-$B risk with their own. Nah, not unless you’re a JPMorgan London credit default swap trader.