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Coadjute, the real-time network that connects the property market, has announced plans to enable retail banks in the UK to issue a mortgage stablecoin on their network, working in partnership with global technology firm R3.

A UK fintech company is gearing up to launch a national sandbox with banks, broker software providers and conveyancing firms to test a mortgage stablecoin designed to improve the mortgage completion process and combat fraud.

The current process for completing a property transaction has seen little innovation in the last 20 years. Multiple parties move large amounts of money between a complex array of accounts, often using email and phone calls to communicate and check details.

Stablecoins issued on the Coadjute Network will be the first UK Retail Bank stablecoins and the first in the world expressly designed to speed the completion of mortgages.

Coadjute, which seeks to pave the way for full digital completion of property sales by increasing transparency and efficiency, reducing fraud, and transforming the customer experience, made the following announcement

A leading tech platform has promised to speed up the property sales process by making mortgage fund transfers quicker on completion day.

Coadjute has announced plans to enable retail banks in the UK to issue a mortgage stablecoin on their network, working in partnership with global technology firm R3.

Stablecoins issued on the Coadjute Network will be the first UK retail bank stablecoins and the first in the world expressly designed to speed-up the completion of mortgages.

Coadjute will be running trials of the new Mortgage Stablecoin service in November with a number of major UK mortgage lenders, along with providers of legal and banking software.

A stablecoin is a digital currency tied to reserve assets, such as traditional currency. Coadjute’s stablecoin will be linked to the Pound sterling.

The stablecoins are purpose-built for mortgage completions and transform the efficiency with which funds can be moved and settled between the parties involved in a property transaction

Property network Coadjute has announced plans to allow retail banks in the UK to issue a mortgage stablecoin, working in partnership with global technology firm R3.

It adds that banks can more closely manage liquidity and forecasts on mortgage inflows and outflows and cut down the potential for fraud from authorised push payments.

The service is set to vastly improve the movement of mortgage funds, which amounts to over £240bn each year nationally.

Dan Salmons, chief executive of Coadjute said the idea came about when the firm noticed the process of completing on a property transaction had not been innovated in decades.

During the last 18 months, the unprecedented volume of transactions created by the SDLT holiday meant that trying to keep on top of those additional manual tasks was a challenge, resulting in many conveyancers working into the night to complete transactions