US Banks Plan to Test a Blockchain Platform for US’ Digital Dollar

A group of banking institutions has announced it is launching a pilot project for a digital money blockchain platform called the Regulated Liability Network (RLN).

According to the press release, BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, US Bank, Wells Fargo, and the New York Fed Innovation Center will take part in the testing.

The document says:

“The 12-week proof of concept will test a version of the RLN design that operates exclusively in US dollars, where commercial banks issue simulated digital money or ‘tokens’ representing their customers’ deposits and settle with simulated central bank reserves on a common multi-platform.”

The project builds on the existing regulatory framework, including compliance with AML measures and requirements for processing deposit payments. The concept does not exclude expansion to multicurrency transactions and other digital assets like stablecoins.