According to the Nikkei Asian Review, large banking corporations in Japan like MUFG and Sumitomo have led their counterparts in the U.S. and Europe to establish Fnality International.
Based in London, Fnality will create a cross-border settlement framework among participating banks that will utilize a fiat-pegged cryptocurrency.
The startup which has raised about $63 million in funding from these banking giants will create accounts in each of the banks before issuing utility settlement coins (USCs).
These USCs – fiat-pegged “cryptocurrencies” have a one-to-one ratio to the underlying fiat currencies. Thus, for a transfer originating in Japan and terminating in the U.S., the Japanese bank will deposit the transaction amount in yen to Japan’s central bank.