Ethereum soars above $600 after a group of big banks announce a new project on its blockchain

MI

• Ether, the second largest cryptocurrency by market capitalization, soared past $600 a token Tuesday.
• Ether was trading up 20% at $616 at 10:35 a.m. ET, according to data from Markets Insider.
• The record comes a day after a group of banks led by UBS announced a data quality control project on Ethereum's blockchain.
• Ethereum's blockchain, unlike bitcoin's, can support layered on applications and facilitates so-called smart-contracts.

Cryptomania is sweeping Wall Street and it's sending digital currencies to new heights.

Complimentary Tech Event

Transform talent with learning that works

Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

Ether, the second largest cryptocurrency by market capitalization, soared past $600 a token for the first time Tuesday. The red-hot digital currency was trading up more than 20% at $616 at 10:35 a.m. ET, according to data from Markets Insider.

Across the vast market for digital coins records are being set. Bitcoin reached a record on Monday above $17,300 and litecoin hit a record above $300 Tuesday morning.

Ether's record tear follows the announcement of a data quality control project on Ethereum, the blockchain network underpinning ether, by a group of banks led by Switzerland-based money manager UBS. Ethereum, unlike bitcoin, can support applications on its network for projects outside of digital money, such as so-called smart contracts.

Barclays, Credit Suisse and UBS are among the banks involved in the pilot, which will help prepare them for Markets in Financial Instruments Directive (MIFID) II, a sweeping regulatory overhaul in Europe set to go live in 2018.

"It is a tool that we are using to improve the quality of our reference data that will be used for regulatory reporting for Mifid II," Peter Stephens, head of blockchain innovation at UBS, told Business Insider.

Instead of trusting a third party to review data and then provide feedback about the accuracy of each party's data, the banks will rely on the blockchain.

"We are putting our trust in the blockchain," Stephens said.