U.S. Banking Community Launches Proof-of-Concept Digital Money Platform

A group of United States banks, including BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Trust, U.S. Bank, and Wells Fargo announced the launch of a proof-of-concept (PoC) project aimed at developing a digital dollar currency platform dubbed the regulated liability Network (RLN). According to the announcement, the RLN is expected to harness the prowess of distributed ledger technology.


Reportedly, the regulated liability Network (RLN) is expected to run in a test version for the next twelve weeks. As such, regulated United States banks will come together to test digital dollars in a tokenized version.

“The 12-week PoC will test a version of the RLN design that operates exclusively in U.S. dollars where commercial banks issue simulated digital money or “tokens” – representing the deposits of their own customers – and settle through simulated central bank reserves on a shared multi-entity distributed ledger,” the announcement reads.

The banks will be testing how well a digital dollar could help reduce friction in inter-banks payments. Additionally, the United States banks intend to see how well the RLN will function with existing laws set by different agencies. 

U.S Banks Build on Blockchain Tech Amid Bearish Sentiments

The group of United States banks has shocked the cryptocurrency industry by building at a time the FTX collapse has shaken confidence. Notably, most market strategists forecast further capitulation in the crypto market. Moreover, Bitcoin price broke a significant support level at $19k following the Alameda and FTX saga.

The RLN has been developed by SETL, Amazon Web Services, and Swift. As for the legal team, the RNL will be backed by Sullivan & Cromwell LLP  while Deloitte will be providing advisory services.

After twelve weeks, the RNL results will be analyzed and used for further development in digital money, according to the announcement. Furthermore, the banking group announced that there is no commitment plan to continue with the project after the RNL simulation is completed.

Banks in the United States have significantly invested in the Web3 industry, despite the sustained bear market. 

Nonetheless, cash inflows toward the blockchain and crypto markets are expected to decline in the coming months.

Furthermore, the overall trading volume has significantly shrunk in the past few months. Whereby the remaining majority of trading volume has been scooped by decentralized exchanges (DEXes).

Notably, the digital dollar being tested by the group of United States banks may be a confirmation of a possible CBDC  backed by the Fed around the corner.

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