Six major global banks have joined a project led by UBS to create a form of digital cash to speed up payments and settlements in the capital markets.

Barclays, CIBC, Credit Suisse, HSBC, MUFG and State Street have all signed up to the Utility Settlement Coin project, which will use blockchain — a centralised ledger that underpins cryptocurrencies such as bitcoin — in an effort to minimise risk in the payments and settlement process.