Citigroup, JPMorgan and other institutions complete tokenized settlement trials

2024-12-08 14:41:26
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ChainCatcher news, according to Ledger Insights, ten institutions have completed a simulation trial of the Regulatory Settlement Network (RSN), exploring the use of a shared DLT network to settle tokenized transactions. In addition to the previous experiments settling tokenized commercial bank funds and tokenized central bank funds on the same network, this experiment also featured tokenized government bonds and investment-grade bonds on the shared ledger. The institutions participating in the experiment include Citibank, JPMorgan, Mastercard, Swift, TD Bank NA, Bank of America, USDF, Wells Fargo, Visa, and Zions Bancorp.

The shared institutional network for tokenized assets has garnered attention for several reasons. If tokenized treasury bills are settled using central bank funds on the same ledger, then settlement risk is almost completely eliminated. Smart contracts enable automation and straight-through processing. The always-online network allows for settlements outside of working hours and batch cut-off times. This could be particularly convenient for assisting overseas clients.

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