Fiat-backed stablecoins
Introduce a stable currency token backed by a 100% reserve of central bank assets or commercial bank cash holdings.
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Predicts 2022: Prepare for Blockchain-Based Digital Disruption, December 2021
Types of stablecoins
Reimagine the future of finance with tokenized cash
There has been rising interest in fiat-backed stablecoins from banks and financial market infrastructure providers as they can co-exist alongside CBDCs, while offering many of the same benefits.
Intra-bank book transfers
Banks are exploring stablecoins or private tokens in their treasury departments to complete internal book transfers across branches. By using an internal token, the bank no longer relies on a third party, resulting in faster transfer times, near real-time settlement and reconciliation, and fewer points of failure.
Atomic securities settlement
Fiat-backed stablecoins or ‘tokenized cash’ can allow for T+1 instead of the market’s current T+2 framework, in which a payment is settled two business days post-trade.
Convert assets into digital tokens
Securities can be converted into digital tokens and traded and serviced with stablecoins, leading to fractional ownership and more transparent price discovery of asset classes.
Cross-border transactions
Transact and move value directly and seamlessly between entities and across borders, while reducing risk.
Resource corner
Webinar Replay: Digital Currencies — from experimentation to production
Digital Currencies: The State of Play in 2022
CBDCs, Stablecoins and the Future of Money
Will Businesses Ever Use Stablecoins?
Cyberport X R3 Innovation Lab Presents: R3 Digital Currency Summit
Webinar Replay: MPC Event – Stablecoin’s Impact on Payments
CBDCs, Stablecoins and the Future of Money
Will Businesses Ever Use Stablecoins
Realize the power of fiat-backed stablecoins
Digital Token Lifecycle Management
There is rising financial market infrastructure and commercial bank interest in fiat-backed stablecoins as they can be easily minted, transferred, and redeemed. For example, a bank can deposit assets in exchange for a token that is defined and created on the network. That ‘minted token’ can be transferred to an owner to pay for an asset on the network and redeemed by a custodian for fiat currency.
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R3 is here to support you at every stage of your digital currency journey–from experimentation to production.
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