Leading global banks kicked off a 12-week pilot together with the New York Federal Reserve.  The so-called regulated liability network will serve as a ground for participants to experiment with wholesale digital asset transaction and settlements. The project will only use simulated data, the New York Fed said.

The USDF Consortium, a trade group promoting the use of tokenized deposits and transactions by banks, praised the project. 

Partners on the digital dollar pilot as part of the New York Fed’s innovation center include BNY Mellon, Citigroup, HSB Holdings, Mastercard, PNC Bank, TD Bank, Truist, U.S. Bank and Wells Fargo & Co.

The international payment system, SWIFT, will provide an interoperable infrastructure. Deloitte will provide advisory services, and Sullivan & Cromwell LL will provide legal advice.

In addition to the announcement of the regulated liability network today, the New York Fed also has an ongoing cross-border digital dollar project.