Share this article
Central Banks Successfully Test DLT in Linking Financial Settlement Systems
The experiment run by the Bank of England and the Bank for International Settlements shows it's possible to settle large synchronized transactions in central bank money, a report said.
Updated Apr 19, 2023, 7:30 a.m. Published Apr 19, 2023, 7:30 a.m.
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.
STORY CONTINUES BELOW
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.
DLT systems that help keep records of and verify crypto transactions have inspired innovation in traditional finance, with banks around the world exploring how the technology could potentially improve the efficiency of interbank transactions or even power digital versions of sovereign currencies. However, a senior official at the Bank of England warned lawmakers in February that DLT may be too clunky to power a central bank digital currency (CBDC).
Meridian is one of several projects by the BIS Innovation Hub dedicated to examining new developments in fintech, from decentralized finance to CBDC systems.
The project tested scenarios where funds were transferred from buyer to seller only if a corresponding asset on a real estate registry moved simultaneously in the opposite direction. But the prototype can be applied other registries and other assets, including equities and bonds, according to the report.
"Applying the prototype to other asset classes, such as foreign exchange, was a principle design consideration," the statement said.
Although the project has demonstrated that synchronized settlements are possible with commercial bank reserves kept with the central bank, implementation of such systems require "policy, regulatory and legal" considerations, the report said.
Read more: Central Banks of Israel, Norway and Sweden Team Up to Explore Retail CBDC
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
CFTC's acting chief Pham poised to go to crypto firm MoonPay once Mike Selig lands
The leader of the derivatives regulator is planning to join the crypto industry as the CFTC and other federal regulators work on policies to benefit the sector.
What to know:
- Commodity Futures Trading Commission Acting Chairman Caroline Pham confirmed again that she's heading to crypto firm MoonPay when the Senate confirms her replacement and he's sworn in.
- President Donald Trump's CFTC chair nominee Mike Selig was set for a Senate vote Wednesday evening, according to that chamber's schedule.
- Selig, currently an SEC official, would arrive at the CFTC just as several of Pham's crypto initiatives have gone live.
Top Stories
