A distributed ledger often referred to as blockchain or distributed ledger technology ("DLT"), has a wide variety of potential uses and is currently being touted as a helpful tool for tracking financial transactions such as issuing and trading stock. Nonetheless, the nature of DLT raises some interesting jurisdictional questions and concerns.
At its core, a distributed ledger is a digital transaction record that is shared with multiple computers (also known as nodes) on a decentralized network. Distributed ledgers are often promoted as being almost immutable because the ...
I. Introduction
Although the virtual-currency business industry is still in its infancy, the Uniform Law Commission ("ULC") sought to create a statutory structure for regulating virtual-currency business activity in an effort to provide innovators and customers certain assurances with respect to the regulatory landscape. The ULC released its final version of the Uniform Regulation of Virtual-Currency Businesses Act ("VCBA") on October 9, 2017, which sets forth extensive requirements that must be met before a person or entity can engage in virtual-currency business ...
In a press release in October of 2017, International Business Machines Corp. (IBM) announced the launch of IBM Blockchain, a blockchain banking solution to help financial institutions "address the processes of universal cross-border payments, designed to reduce the settlement time and lower the cost of completing global payments for businesses and consumers." IBM partnered up with a non-profit blockchain organization and currency exchange company to develop the new blockchain that purports to allow banks to rapidly "both clear and settle payment transactions around the ...
UBS is leading a team of banks developing a blockchain-based system to enable financial markets to rapidly settle transactions and make payments. On August 31, 2017, UBS announced that six additional banks have joined the group developing the system, which is set to launch in late 2018. The banks are collaborating to use blockchain technology to increase speed and efficiency in business transactions. To do so, UBS has developed a "Utility Settlement Coin" ("USC"), a digital cash equivalent of each of the major currencies backed by central banks, rather than a decentralized new ...