Bank of England to Test DLT Use in New Settlement System

The Bank of England has launched a proof of concept that will explore DLT-compatibility with its real time gross settlement service.

AccessTimeIconMar 27, 2018 at 9:45 p.m. UTC
Updated Sep 13, 2021 at 7:44 a.m. UTC

The Bank of England said Tuesday that it is undertaking a new proof-of-concept to explore the ways its planned real-time gross settlement (RTGS) system could connect with distributed ledger networks.

The U.K. central bank first announced its intentions to develop a DLT-compatible service in 2017, having previously said that it wouldn't move to base the system on the tech outright – a decision it referenced in this week's announcement.

"Although the Bank has concluded that distributed ledger technology (DLT) is not yet sufficiently mature to provide the core for the next generation of RTGS," a statement said, "it places a high priority on ensuring that the new service is capable of interfacing with DLT as and when it is developed in the wider sterling markets."

Specifically, the project's participants will examine whether "innovative settlement systems," such as those based on DLT, are able to interact with its proposed 'renewed' cloud-based RTGS service. Project participants include payments technology providers Baton Systems and Token, R3 and Clearmatics.

It will also aim to pinpoint ways in which the service's "functionality could be expanded" through the use of new technologies.

The UK central bank said that it hopes the firms' involvement will "give broader insight into the range of functionality the Bank might need to offer to support this sector."

The Bank of England plans to issue a report on the results of the proof-of-concept later this year.

Bank of England image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First Mover Asia: Bitcoin Holds Above $21K in Weekend Trading; Solana Web3 Phone Faces Long Odds

Ether stays over $1,200; prior blockchain phones have failed because the market has realized their functionalities are already available via apps that can be loaded onto any old phone.

CoinDesk - Unknown
2
CoinDesk - Unknown
Opaque Platforms and Intertwined Protocols Pose Big Risk to Crypto

Second article in a series about risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
3
CoinDesk - Unknown
Putin Weaponizes Inflation

Examining a recent propaganda speech from the Russian leader.

CoinDesk - Unknown
4
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown