Briefing
AMINA Bank, Crypto Finance Group, and partner institutions successfully completed a pilot for domestic fiat payment settlement utilizing Distributed Ledger Technology (DLT) on the Google Cloud Universal Ledger platform. This integration fundamentally re-architects the interbank settlement layer, moving from legacy batch processing to continuous, 24/7 finality, which significantly de-risks the financial system by eliminating intraday liquidity constraints and lowering counterparty exposure. The core achievement is compliant, near-real-time settlement using existing commercial bank money within the current Swiss regulatory framework.
Context
Traditional interbank payment systems rely on legacy infrastructure that necessitates batch processing and operates only during specific business hours, leading to significant delays and creating systemic risk. This operational challenge forces banks to maintain large, non-productive liquidity buffers to cover transactions that are not settled until the next business cycle, directly increasing capital costs and restricting the velocity of money. The prevailing operational challenge is the high cost and risk associated with deferred settlement, particularly in a global economy demanding instant value transfer.
Analysis
The DLT implementation alters the core treasury management and payment processing systems by functioning as a shared, immutable settlement layer integrated directly into the participating banks’ core systems. When a payment is initiated, the DLT records the transaction and executes the atomic settlement of commercial bank money almost instantly, eliminating the need for a central clearing house to reconcile ledgers hours or days later. This chain of cause and effect translates to improved capital efficiency for the enterprise, as funds are no longer trapped in the settlement pipeline, and it establishes a new industry standard for regulated, instant value transfer that is fully auditable and compliant with existing banking standards.
Parameters
- Lead Institutions → AMINA Bank, Crypto Finance Group
- Technology Platform → Google Cloud Universal Ledger (GCUL)
- Core Use Case → Near-Real-Time Fiat Settlement
- Regulatory Context → Swiss-Regulated Institutions
- Project Scope → Domestic Payments Pilot
Outlook
The immediate next phase is the scaling of this model to support cross-border and multi-currency settlements, leveraging the established regulatory compatibility. This success puts pressure on major correspondent banking networks to accelerate their own modernization efforts. The adoption of a cloud-based DLT ledger for commercial bank money sets a powerful precedent, positioning this framework as a potential blueprint for other G20 financial centers seeking to upgrade their core payment infrastructure without resorting to central bank digital currencies (CBDCs) or unbacked stablecoins.
