Achieving instant dollar wholesale settlement with the Regulated Liability Network

The New York Innovation Center, housed within the Federal Reserve Bank of New York, has completed the proof-of-concept phase of its Regulated Liability Network, proving it can achieve legal instant dollar settlement anywhere in the world. The trial successfully explored international payment scenarios, identifying shared ledger technology as a potential solution to support wholesale payments innovation, which in turn could help reinforce the dollar’s role as the leading reserve currency.

Antoine Martine, senior vice president and financial research adviser at the Federal Reserve Bank of New York, joined OMFIF to discuss key findings from the RLN project. We explored the opportunities distributed ledger technology can bring to help improve the coordination of settlement, including the efficiency, security and transparency of wholesale payments, as well as the ways in which the RLN can foster trust and confidence among market participants.