Six of the world's biggest banks have joined a project to create a new digital currency, the Financial Times reported Thursday.

The crytocurrency will be used for clearing and settling transactions over blockchain.

Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG and State Street are working on the "utility settlement coin" that was created by UBS, the newspaper added.

The banks are in discussions with central banks and regulators, FT reported, citing Hyder Jaffrey, UBS' head of strategic investment and fintech innovation.

The currency will "go live" in a limited way late next year, Jaffrey told the paper.

The "utility settlement coin" project first launched in 2015, and has been reported on regularly. Still, this week's news is about the transition into the next phase of the project "in which its members aim to deepen discussions with central banks and to work on tightening up its data privacy and cyber security protections," according to the FT.

Read the Financial Times' story about the "utility settlement coin" project.