SETL has partnered with New York-based Digital Asset to create a new protocol that can be used by regulated institutions to launch interoperable tokens.
The new protocol, inspired by Citi’s Regulated Liability Network (RLN) initiative, will be developed and operated to allow 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. The transfer of tokens between banks will be managed by the network which will mint, burn and transfer tokens to achieve real-time settlement between 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 learn about the new protocol.
Philippe Morel, CEO of SETL, comments: “There is real momentum behind the RLN model and we are excited to partner with the Digital Asset team to deliver on the promise of blockchain and DLT for banks and their customers everywhere. in the world. This approach will be easy for organizations to adopt and will provide an equally simple model for central bank digital currency, banking and e-money coins, and any kind of token liability like bonds, loans, and stocks.
Yuval Rooz, CEO of Digital Asset, said, “We have always prided ourselves on 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 customer solutions to serve the regulated community.