Chris Ngoi, CFA, CA’s Post

Project Meridian FX: Joint Project by the Eurosystem and London Centres, and the Bank of England, to Test Synchronised Settlement in FX "The project will provide insights on how operators of real-time gross settlement (RTGS) systems could enable interoperability with new payments technologies, such as distributed ledger technology (DLT). It will highlight the opportunities that the synchronisation model could unlock, including more innovative and efficient settlement services for a wider range of assets that are settled in central bank money." https://lnkd.in/e8bNrBHp Bank for International Settlements – BIS #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

“The project will provide insights on how operators of real-time gross settlement (RTGS) systems could enable interoperability with new payments technologies, such as distributed ledger technology (DLT). It will highlight the opportunities that the synchronisation model could unlock, including more innovative and efficient settlement services for a wider range of assets that are settled in central bank money. By focusing on FX transactions, the project could also offer potential solutions to long-standing issues in settling FX trades, such as the costs, risks and time involved in cross-border transaction”

Cboe Clear Europe Successfully Participates in ECB Experiment on Use of DLT Vikesh Patel, President, Cboe Clear Europe, said: “As Europe’s largest and most-connected pan-European clearing house, our core mission has always been to advance Europe’s post-trade landscape. Our successful participation in the ECB’s exploratory work, alongside ABN Amro Clearing Bank N.V., demonstrates our commitment to innovation and building our understanding of new technologies such as DLT.” https://lnkd.in/e-haU_uE #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Attached is a very nice summary of the Bank for International Settlements – BIS's mBridge project. The BIS mBridge project is a collaborative effort of the BIS Innovation Hub. The project aims to experiment with a multiple-central bank digital currency (multi-CBDC) common platform for wholesale cross-border payments. It seeks to solve some of the key inefficiencies of cross-border payments, such as high costs, low speed and transparency, and operational complexities. At the same time, the project aims to safeguard currency sovereignty and monetary and financial stability for each participating jurisdiction, guided by the principles of “do no harm”, compliance and interoperability In simpler terms, the project is exploring ways to make cross-border payments faster, cheaper, and more transparent. It is a platform that leverages digital ledger technology and a byzantine fault tolerance consensus protocol to allow direct, bilateral connectivity between the payee’s and payer’s local banks supported by interoperability (ISO 200022) with participants’ domestic payment systems. The project is still in its experimental phase and is not yet available for public use. https://lnkd.in/ejRGd4wA

In the realm of financial messaging networks and settlement companies, the landscape is complex and often challenging to navigate. The process of managing worldwide payments involves intricate settlements, necessitating specific correspondent banks for specific zones. This requirement often entails rigorous documentation, a process that may or may not yield sufficient benefits. However, the advent of RTGS Global has signaled a paradigm shift in this domain. The innovative approach to settlements introduced by RTGS Global is poised to revolutionize the industry in the coming decade. The simplicity and efficiency of their system are likely to resonate with numerous banks worldwide, positioning RTGS Global as a formidable competitor in the financial technology space. The successful tests conducted in a controlled environment have demonstrated the efficacy of the RTGS Global system. As an individual with extensive experience in the International Banking Relationships Sector (IBRS), I am confident in the potential of RTGS Global. I strongly advocate for banks globally to consider aligning with RTGS Global at the earliest opportunity. The future of financial messaging networks is on the brink of significant transformation, and being part of this change could be a strategic move for many financial institutions. I extend my best wishes to RTGS Global in their endeavors and look forward to witnessing their continued success. Just read about them: https://lnkd.in/gURXcPP6 .

In our latest edition of Payment in Focus, Piers Barton explores how cross-border PSPs are pushing the boundaries of instant global settlement. In the article, Piers talks about how RTGS.global's settlement solution can support PSPs in differentiating their service offering, managing their liquidity, and helping cut down their costs. Read Piers' full insights here. https://lnkd.in/eHTxDdiQ

SIFMA C&L Society “In the current financial system, commercial bank money, wholesale central bank money, and securities such as U.S. Treasuries and investment grade debt all reside on separate systems. The tokenization of these instruments may enable settlement on a common regulated venue established under existing legal frameworks. To explore this potential, members of the regulated U.S. financial sector today announced a Regulated Settlement Network (RSN) proof-of-concept (PoC) that will explore the feasibility of shared ledger technology to settle tokenized commercial bank money, wholesale central bank money, U.S. Treasury securities and other tokenized assets.”

#Tokenization endeavors grow in Europe as Clearstream, DekaBank Deutsche Girozentrale and DZ BANK AG have jointly issued two tokenised €5-million bonds using distributed-ledger technology (#DLT). The issuances took place in the context of the European Central Bank trials aimed at exploring the potential of DLT for settling wholesale transactions in central bank money. The trials are conducted in a productive environment, using real central bank money. The timeframe is set for May to November 2024. The transactions mark the first institutional-grade issuances in #Germany on DLT using wholesale digital central bank money. Issuing #securities on DLT increases transparency and automation, which reduces the need for manual intervention. Additionally, using central bank money provides enhanced safety, liquidity and monetary policy alignment for issuers and investors alike. “The use case impresses with the simplicity of issuing a security with DLT technology and at the same time benefiting from the advantages of the Trigger Solution. The delivery versus payment of the Trigger Solution proves how the issuing and settlement processes of private blockchains and wholesale #CBDC will interact in future. As issuer, banks benefit from the speed, scalability and security of the new technology,” said Silvio Lenk, Head of Treasury at DekaBank Deutsche Girozentrale. “To explore the potential of digital assets, you have to take care of the whole lifecycle – from issuance via dvp settlement to maturity including the utilisation of central bank money. Participating in the ECB trials with strong partners like Deutsche Börse Group and DekaBank Deutsche Girozentrale, we are delighted to get valuable insights on our way to higher efficiency,” Holger Meffert, Head of Securities Services & Digital Custody at DZ BANK AG, pointed out.   Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, said: “With the next-generation digital post-trade platform D7 Clearstream aims to digitise the entire post-trade value chain. With our new D7 DLT, launched for the ECB trials, we provide seamless processing of digital assets and high-quality cash on-chain, which is an important step in developing a digital European securities landscape. This transaction represents a significant milestone for the creation of stable digital capital markets in Germany and Europe, demonstrating the power of digital solutions in enhancing safety, liquidity and efficiency.” #AltBanking The leading aggregator, bringing the best actionable news, information and opportunities in this rapidly evolving ecosystem right to you. Follow us to stay up-to-date! #finance #banking #fintech #TradFi #DeFi #Web3 #ECB #blockchain #tokenisation #digitalassets https://lnkd.in/ecFCY_sx

TradeTech FX US: As market adherence to the global FX code continues to surge, the Global Foreign Exchange Committee (GFXC) shared its planned next steps with TradeTech FX US attendees in Miami. “The first [focus] is mitigating settlement risk. What we want to do in the global community is promote the adoption of payment versus payment and settlement methods or something similar – for example automated netting – or anything else which can significantly mitigate risks,” said Gerardo Israel García López. #markets #trading #foreignexchange #regulation #marketstructure #sellside #buyside #execution #transparency #globalFXcode

Ever wondered what 3 decades in FX and Payments look like? 🤔 We ask Nabeel, our CRO & Co-founder, Head of FX Risk Solutions, a handful of questions to learn more about his experience and his Routefusion story. 🤠 Oh, did we mention he is Canadian? 🇨🇦 #payments #fx #fintech #crossborder #embeddedfinance #baas #globalpayments #fxrisk #currency