Central Banks Successfully Test DLT in Linking Financial Settlement Systems
A central bank experiment has successfully tested the use of distributed ledger technology (DLT) in running large and complex interbank transactions, according to a report released on Wednesday.
The Bank of England ran “Project Meridian” through the Bank for International Settlements’ (BIS) London innovation hub to build a prototype that could potentially speed up and reduce costs of transactions in central bank Real-Time Gross Settlement (RTGS) systems.
The project used DLT to link the central bank’s RTGS system “with other financial market infrastructures and ledgers automatically orchestrating the exchange in ownership of funds and assets in a resilient and secure way,” according to a statement issued by BIS, which groups the world’s central banks.
