SETL and Digital Asset partner for protocols to launch interoperable tokens
10 February 2022 US
Image: jorisvo/stock.adobe.com
SETL has partnered with New York-based Digital Asset to create a new protocol which can be used by regulated institutions to launch interoperable tokens.
The new protocol, modelled on Citi鈥檚 Regulated Liability Network (RLN) initiative, will be developed and operated to enable banks, central banks and other regulated institutions to create tokens for their customers.
Each token will represent a promise from the issuer to the holder of the token. Transferring tokens between banks will be handled by the network which will mint, burn and transfer tokens to achieve real-time settlement between the customers of any regulated institution.
The joint initiative will be ready for testing later this year. SETL and Digital Asset have invited interested institutions to open a partition on its prototype network to test use-cases and to familiarise themselves with the new protocol.
Philippe Morel, CEO of SETL, comments: 鈥淭here is real momentum behind the RLN model and we are excited to join forces with the Digital Asset team to fulfil the promise of blockchain and DLT for banks and their customers everywhere. This approach will be easy for organisations to embrace and will provide an equally simple model for Central Bank Digital Currency, bank and e-money coins, as well as any kind of tokenised liability such as bonds, loans and shares.鈥�
Yuval Rooz, CEO of Digital Asset, says: 鈥淲e have always taken pride in enabling our clients to innovate and this is no exception. Interoperability is a major goal for us and by working with SETL we will produce a world class network with the ability to connect and communicate across all existing clients鈥� solutions to serve the regulated community.鈥�
The new protocol, modelled on Citi鈥檚 Regulated Liability Network (RLN) initiative, will be developed and operated to enable banks, central banks and other regulated institutions to create tokens for their customers.
Each token will represent a promise from the issuer to the holder of the token. Transferring tokens between banks will be handled by the network which will mint, burn and transfer tokens to achieve real-time settlement between the customers of any regulated institution.
The joint initiative will be ready for testing later this year. SETL and Digital Asset have invited interested institutions to open a partition on its prototype network to test use-cases and to familiarise themselves with the new protocol.
Philippe Morel, CEO of SETL, comments: 鈥淭here is real momentum behind the RLN model and we are excited to join forces with the Digital Asset team to fulfil the promise of blockchain and DLT for banks and their customers everywhere. This approach will be easy for organisations to embrace and will provide an equally simple model for Central Bank Digital Currency, bank and e-money coins, as well as any kind of tokenised liability such as bonds, loans and shares.鈥�
Yuval Rooz, CEO of Digital Asset, says: 鈥淲e have always taken pride in enabling our clients to innovate and this is no exception. Interoperability is a major goal for us and by working with SETL we will produce a world class network with the ability to connect and communicate across all existing clients鈥� solutions to serve the regulated community.鈥�
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