FIS and 6 US Banks Launch Project Keystone | LeapRate | Online Trading Industry News, Broker Intelligence & Fintech Analysis
On Thursday, FIS announced Project Keystone, a new network for digital money designed and administered by banks, developed in partnership with six US financial institutions, including Citizens, Fifth Third, Huntington Bank, KeyBank, and M&T Bank.
The network is expected to enable participating banks to issue, transfer, and settle regulated deposits in digital form on shared infrastructure that the banks themselves control, without ceding that capability to third-party providers.
Transactions on the network will operate on an all-or-nothing settlement basis, eliminating the partial failures and reconciliation burdens associated with conventional interbank settlement.
FIS stated in its press release that the network would handle real bank deposits in digital form, meaning the money moving through Project Keystone would be regulated and bank-issued rather than a new asset class.
The participating institutions represent a range of charter types and technology providers, reflecting the breadth of institutions for which the network is intended to operate.
“Banks are the cornerstone of trust in the financial system, and they should define how digital money evolves,” said Jim Johnson, Co-President of Banking Solutions at FIS.
“The digital money space has no shortage of technology looking for adoption. What it has lacked is banks moving together with shared administration and infrastructure among financial institutions,” he added. “Project Keystone brings together institutions of different sizes, charters, and core providers – because a network that doesn’t work for all of them doesn’t work.”
