NY Fed, MAS Study Distributed Ledger Technology for Payments

An experiment between the New York Federal Reserve’s innovation center and Singapore’s central bank showed that distributed ledger technology could support enhancements to cross-border wholesale multi-currency payments and settlements, according to a joint release.

• Fed and Monetary Authority of Singapore conducted a technical research built on previous phases of their cross-border payment projects known as Project Cedar and Project Ubin, respectively
  • Explored DLT’s ability to establish connectivity across heterogeneous simulated currency ledgers, reduce settlement risk and decrease settlement time
• Experiment “envisages a future digital currency landscape where central banks can enable interoperability of wholesale CBDCs to facilitate more efficient ...