DLT payments infrastructure refers to the foundational systems and protocols constructed using distributed ledger technology for processing and settling financial transactions. This infrastructure seeks to enable more efficient, secure, and transparent payment flows. It replaces traditional intermediary-dependent systems with a shared, immutable ledger. This design can reduce settlement times and operational costs for payments.
Context
The advancement of DLT payments infrastructure is a significant area of focus for central banks, commercial banks, and payment service providers globally. Pilot programs and initiatives are exploring its utilization for wholesale interbank settlements and cross-border payments. Regulatory frameworks are adapting to accommodate these new payment rails and ensure their stability. The potential for real-time gross settlement and atomic swaps represents a key advantage.
DLT integration into core banking systems enables compliant, near-real-time settlement using commercial bank money, drastically reducing counterparty risk and operational friction.
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