Bank Money

Definition ∞ Bank money refers to the digital funds held by individuals and businesses in commercial bank accounts. This form of money represents liabilities of commercial banks to their depositors, created through lending and deposit-taking activities. It exists primarily as electronic entries on bank ledgers rather than physical currency. Bank money constitutes the vast majority of the money supply in modern economies, facilitating most non-cash transactions.
Context ∞ The role of bank money is frequently discussed in comparison to central bank digital currencies and private digital assets. A key debate involves the potential for digital assets to alter the traditional banking system and the creation of money. Regulatory bodies are examining how to maintain financial stability and consumer protection as digital alternatives to bank money gain traction.

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→Near-Real-Time Finality

→Operational Efficiency

→Risk

Swiss Banks Achieve Near-Real-Time Fiat Settlement Using Google Cloud DLT

This DLT integration with core banking systems enables compliant, 24/7 near-instant settlement, dramatically reducing counterparty and liquidity risk.

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→Capital Efficiency

→Institutional Finance

→Real-Time Settlement

Swiss Banks Pilot DLT for Near-Real-Time Cross-Border Fiat Settlement

The pilot utilizes a DLT layer on commercial bank money to achieve compliant, near-real-time cross-border settlement, dramatically enhancing global liquidity and operational capital efficiency.

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→Transaction Security

→Digital Payments

→Fiat Currency Transactions

Swiss Banks Pilot DLT for Near-Real-Time Fiat Cross-Border Settlement

DLT integration into core banking systems enables compliant, 24/7 cross-currency settlement, drastically reducing counterparty risk and operational friction in global payments.

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→Payments

→Global Payments

→Financial Infrastructure

Swiss Banks Pilot DLT for Near-Real-Time Fiat Payment Settlement

Integrating DLT into core systems enables near-instant, compliant settlement of commercial bank money, drastically improving capital efficiency.

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→Programmable Payments

→DLT Network

→Ledger Technology

DBS and JPMorgan Connect DLT Platforms for Interoperable Deposit Settlement

The interoperability framework links two major bank DLT networks, establishing a real-time, cross-border value highway that reduces operational friction and enhances capital efficiency for multinational clients.

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→Interbank Transactions

→Counterparty Risk

→Treasury

German Banks Launch Sandbox for Tokenized Commercial Money Settlement on DLT

The CBMT Sandbox enables real-time, on-chain commercial bank money settlement, eliminating payment friction and enhancing capital efficiency across the enterprise value chain.

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→Sterling Currency

→Commercial Bank Money

→Mortgage Process

Six Major UK Banks Pilot Live Tokenized Sterling Deposit Platform

This systemic pilot of tokenized deposits digitizes commercial bank money for programmable payments, enabling T+0 settlement and mitigating counterparty risk within the regulated perimeter.

→Sterling Deposit Tokenization

→Asset Tokenization

→Settlement

Six Major UK Banks Pilot Tokenized Sterling Deposits for Settlement Efficiency

The consortium pilot of tokenized commercial bank deposits leverages DLT to enable programmable sterling, reducing settlement friction and counterparty risk.

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→Digital Clearing