Wall Street Tests Crypto Dollars With Fed, Defying FTX Gloom
- Citi, Wells Fargo among banks participating in 12-week test
- Network for digital dollars will settle on distributed ledger
Source: Getty Images
This article is for subscribers only.
A Federal Reserve Bank of New York unit will partner with almost a dozen banks and other financial institutions to test out digital dollars, a sign that Wall Street intends to push ahead with its cryptocurrency agenda despite recent upheaval in the market.
Banks including Citigroup Inc. and Wells Fargo & Co. will work with the Fed’s New York Innovation Center on a new network as part of the 12-week test. The technology -- known as a regulated liability network -- will allow banks to simulate issuing digital money representing their customers’ own funds before settling through central bank reserves on a distributed ledger.