Interbank Settlement

Definition ∞ Interbank settlement is the process by which financial institutions exchange funds to discharge mutual obligations. This involves the final transfer of money between banks, typically to clear transactions that have occurred between their customers. It is a critical function for the smooth operation of the global financial system.
Context ∞ The concept of interbank settlement is pertinent to discussions about how blockchain technology or stablecoins could potentially streamline or disrupt traditional payment rails. News may report on experiments or proposals for using distributed ledger technology to facilitate faster and cheaper interbank settlements, contrasting them with existing correspondent banking models. Understanding this process provides a baseline for evaluating innovations in cross-border payments and financial infrastructure.

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→Treasury Management

→Payment Rails

→Issuer Settlement

Visa Expands USDC Settlement Rail across CEMEA Region with Aquanow Partnership

The integration of stablecoin rails into Visa Direct's back-end settlement process reduces intermediary reliance, enabling 365-day, near-instant liquidity management for global financial institutions.

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→Financial Infrastructure

→Multi-Currency Settlement

→Cross-Border Payments

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

Integrating DLT on cloud infrastructure enables regulated banks to achieve near-instant, 24/7 domestic fiat settlement, optimizing intraday liquidity and reducing systemic counterparty risk.

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→Core Banking Integration

→Batch Processing

→Settlement Layer

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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→Digital Fiat

→Cross-Border Payments

→Distributed Ledger

HSBC Expands Tokenized Deposit Service for Instant Cross-Border Corporate Treasury Settlement

The DLT-based Tokenized Deposit Service enables 24/7, T+0 cross-border settlement for corporate treasuries, optimizing global liquidity management and capital efficiency.

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→DLT Pilot Program

→Commercial Bank Money

→Interbank Settlement

Swiss Banks Pilot DLT for 24/7 Cross-Border Fiat Payment Settlement

Integrating DLT onto the core banking layer enables compliant, near-real-time, 24/7 interbank settlement, eliminating multi-day cross-border friction.

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→Regulatory Sandbox

→Real-Time Gross Settlement

→Digital Ledger

HKMA Launches Tokenized Deposit Pilot with Major Banks for Settlement Infrastructure

Integrating tokenized deposits with RTGS modernizes interbank settlement, reducing counterparty risk and unlocking 24/7 liquidity.

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→Systemic Risk Reduction

→Capital Efficiency

→Tokenized Securities

J.P. Morgan Tokenized Collateral Network Scales to Trillions in Value

Scaling the Tokenized Collateral Network reduces counterparty risk and unlocks billions in capital efficiency through atomic, T+0 settlement.

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→Shared Ledger

→Financial Innovation

→Operational Efficiency

Swiss Banks Pilot DLT for Near-Real-Time Commercial Bank Money Settlement

DLT implementation on commercial bank money delivers compliant, near-real-time settlement rails, drastically improving capital efficiency and operational uptime.

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→Wholesale Payments

→Institutional Finance

→Cross-Border Payments

HSBC and JPMorgan Advance Tokenized Deposit Infrastructure for 24/7 Settlement

Global banking leaders are architecting a regulated DLT-based deposit token framework to achieve instant, 24/7 cross-border settlement, mitigating counterparty risk and enhancing capital efficiency.

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→Regulatory Sandbox

→Interbank Settlement

→Wholesale CBDC

Hong Kong Monetary Authority Pilots Tokenized Deposits for Institutional Liquidity Management

Integrating tokenized commercial bank deposits with the HKD RTGS system enables real-time interbank settlement, drastically enhancing capital efficiency and systemic liquidity for institutional treasury operations.