A group of leading US financial services companies, including Citi, JP Morgan, and Visa, is engaging in a proof-of-concept (PoC) for a Regulated Settlement Network (RSN) that will examine multi-asset settlement using shared ledger technology.
This initiative, led by the regulatory agency Sifma and involving partners such as Swift, Mastercard, and TD Bank, aims to investigate the use of shared ledger technology to facilitate the settlement of tokenized commercial bank money, wholesale central bank money, US Treasury securities, and other tokenized assets.
The objective is to establish an interoperable network for multi-asset transactions capable of functioning on a 24/7, programmable shared ledger. Building on insights from a previous industry PoC, this project will delve deeper into the settlement of tokenized cash and securities on a unified system.
Conducted in a testing environment, the RSN PoC will simulate multi-asset transactions in US dollars.
Raj Dhamodharan, EVP of blockchain and digital assets at Mastercard, noted, “The application of shared ledger technology to dollar settlements could unlock the next generation of market infrastructures, where programmable settlements are available 24/7 and frictionless.”
Charles de Simone, MD of Sifma, emphasized the importance of this exploration, stating, “This initiative is critical for investigating innovations with digital forms of USD cash and securities, as market participants continue to seek ways to enhance efficient and resilient capital markets.”
Findings from the PoC will be published, though participants have not yet committed to any future research.