The BIS Innovation Hubs in London and Europe completed a joint DLT project that explored cross border payments using Payment versus Payment (PvP) as part of Project Meridian FX. It involved the central banks of England, France, Germany and Italy. PvP for foreign exchange (FX) means both sides of the transaction settle simultaneously or atomically, considerably reducing Herstatt risk.
That’s the risk that one of the currency payments is made, but the payer doesn’t receive the other currency.
It built on the London Hub’s Project Meridian trial for real estate settlement that used a DLT-based synchronization solution to simultaneously transfer a property title and payment using the Real Time Gross Settlement (RTGS) system.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
