SETL Development Limited, a UK blockchain technology company primarily focusing on financial services, has recently received a licence from French government to use blockchain technology in security settlements. SETL has received a licence to use blockchain technology in back-office settlement which aims to make the security settlements faster. Blockchain technology aim to replace the time intensive manual cash settlement process and the it also expected to fuel cross-border payments.
Blockchain technology is expected to fuel cash-settlements of central banks with other commercial banks. Also, the technology is likely to facilitate remittance and security settlement services to accounts held at a central bank. According to the France Central Securities Depository, SETL is likely to start offering blockchain services to Central Bank of France in early 2019. Only the local and international banks that are receiving cash settlements will be levied transaction fee towards blockchain settlements, but not central bank.
Unlike other block chain providers, SETL offers payment settlements through cash and the company does not offer payment settlements through cryptocurrency. Also, SETL allows a few numbers of a small group of trusted parties to see ledgers. The licence will allow SETL to connect to Target2-Securities platform, which aims to offer centralised payment delivery system, which will enhance its offerings in blockchain based financial services.
Since its launch in 2015, SETL is focusing on deploying blockchain technology in highly regulated markets in financial services industry. The company also has multiple partnerships with European fund record-keeping platforms, banks and Fintech solution providers. With the licence from France regulatory, SETL is more likely to harness European payment settlement systems by partnering with European central bank and many other private banks.