Global Clearing refers to the process of reconciling and settling financial transactions across international borders, ensuring that obligations between parties are met. This typically involves central clearing houses that act as intermediaries, reducing counterparty risk and standardizing settlement procedures. It is a fundamental component of efficient international financial markets.
Context
The concept of Global Clearing is undergoing significant transformation with the advent of blockchain technology, which offers potential for near-instantaneous, direct settlement of cross-border transactions. News often discusses initiatives exploring how distributed ledger technology could disintermediate traditional clearing processes, reducing costs and settlement times. Regulatory bodies are examining the implications for systemic risk and the need for new international standards.
The bank is leveraging tokenized deposits to migrate a portion of its $2.5 trillion daily payment volume onto DLT for continuous, real-time settlement.
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