The Federal Reserve Bank will work with members of the banking community to advance asset tokenization research. Its New York Innovation Center (NYIC) will take part in the Regulated Liability Network U.S. Pilot, a 12-week proof-of-concept project.
It will use distributed ledger technology to test the technical feasibility, legal viability, and business applicability of an interoperable network of digital central bank liabilities and commercial bank digital money.
BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, U.S. Bank, and Wells Fargo will be among the banks involved. Swift, a global provider of financial messaging services, will promote interoperability throughout the international financial ecosystem.
According to Per von Zelowitz, Director of the New York Innovation Center, the collaboration will help advance research on asset tokenization and the future of financial market infrastructures in the United States as money and banking evolve.
The experiment with the concept of a Regulated Liability Network (RLN) will have a sandbox vendor, SETL with Digital Asset, legal services provided by Sullivan & Cromwell LLP, and advisory services provided by Deloitte.
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