NY Fed, banks wrap up regulated liabilities network proof-of-concept using wCBDC

cointelegraph.com:

The Federal Reserve Bank of New York’s Innovation Center (NYIC) has completed its proof-of-concept of a regulated liability network (RLN) in conjunction with nine large financial institutions and the Swift network. The project created theoretical infrastructure to exchange and settle commercial bank deposit tokens and central bank liabilities using distributed ledger technology and a simulated central bank digital currency (CBDC) in the United States.

Asset transfers are currently carried out through messaging along the chain of the parties involved. Messaging takes place almost instantly, but settlement does not, Tony McLaughlin, head of emerging payments and business development at Citi Treasury and Trade Solutions, said in a webinar introducing the project results.

The project abandoned trustlessness and anonymity, among other features, from its blockchain to create a system that contained value in the ledger rather than settling via messaging. The simulated RLN functioned around the clock with multi-asset settlement and programmability, McLaughlin said.

Related: FX spot settlement in 10 seconds: NY Fed releases results of wholesale CBDC research

The simulated RLN preserved full U.S. Anti-Money Laundering and Know Your Customer protections in international settlements, McLaughlin said. He called the RLN “a game changer for international users of the dollar” that would help maintain the dollar’s role as the international currency of choice.

Deloitte will host a webinar tomorrow with the NY Fed Innovation Center, Mastercard, Citi, and Sullivan & Cromwell to share the findings of the Regulated Liability Network proof-of-concept. See the link to RSVP for the webcast:#payments #CBDC #bankinghttps://t.co/k051hbcesh

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