Researchers at a UK innovation lab operated by Swiss banking giant UBS are developing a blockchain implementation for settling transactions.

As reported by Financial News, the lab, opened earlier this year, is currently at work on a cryptocurrency that would be “linked to real-world currencies and connected to central bank accounts”. The project is being undertaken in collaboration with blockchain startup Clearmatics.

UBS is reportedly also working with BNY Mellon on other blockchain-related initiatives. BNY Mellon disclosed earlier this year that it had been developing an internal rewards system using an in-house cryptocurrency.

UBS innovation lab chief Alex Batlin told CoinDesk last month that the lab is currently involved in a variety of blockchain-related projects, noting at the time:

“We conduct experiments, which are different to proof-of-concepts, as we don’t have a concept yet. We’re just saying, here’s a hypothesis, let’s figure out could it work at all.”

The bank’s interest in the technology dates back to last year, when in an extensive report on bitcoin, UBS suggested that blockchain applications” could reduce systemic costs, and provide faster, [more] secure, transfers – particularly in the international arena”.

The report further revealed UBS has an interest in blockchains that extends beyond bitcoin, as it is experimenting with smart bond applications using a private fork of Ethereum.

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