What is the Context of Regulated Liability Network?

The Regulated Liability Network is a topic of significant interest among central banks and major financial institutions exploring the future of money and payments, particularly for wholesale CBDCs and tokenized securities. Discussions focus on its potential to enhance interoperability, reduce settlement risk, and support new financial products. This must adhere to stringent regulatory and compliance standards.

Regulated Liability Network

Definition

A Regulated Liability Network (RLN) is a conceptual framework for a shared ledger system where regulated financial institutions can issue tokenized liabilities, such as deposits or central bank money, and settle transactions. This network aims to provide a secure and efficient platform for wholesale payments and digital asset transfers within a controlled environment. It seeks to modernize financial market infrastructure.

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∞Instant Payments

∞Regulated Liability Network

∞Treasury Management

Custodia and Vantage Launch Tokenized Deposit Platform for US Banks

The tokenized deposit platform integrates regulated bank money onto DLT rails, enabling real-time cross-border and supply chain settlement while mitigating deposit disintermediation risk.

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∞Financial Market Infrastructure

∞Sterling Deposit Tokenization

∞Tokenized Commercial Money

Six Major UK Banks Pilot Tokenized Sterling Deposits for Settlement Efficiency

This consortium-led pilot leverages tokenized deposits as a regulated settlement layer, drastically cutting counterparty risk and friction in wholesale and retail transactions.

A close-up view reveals a sophisticated hardware wallet, featuring a prominent faceted blue secure element, reminiscent of a digital asset or token. Brushed metallic surfaces encase transparent components, highlighting an internal blue glow, symbolizing cryptographic key protection. This device represents robust security for private key management, facilitating secure transaction signing and immutable ledger interactions within a decentralized finance ecosystem, safeguarding digital identity and Web3 assets.

∞Wholesale Payments

∞Digital Liabilities

∞Operational Efficiency

Federal Reserve and Major Banks Pilot Tokenized Liability Network Settlement

The Regulated Liability Network PoC leverages DLT for atomic settlement of tokenized bank liabilities, reducing counterparty risk and friction in wholesale interbank payments.

Regulated Liability Network

Definition

Context

Custodia and Vantage Launch Tokenized Deposit Platform for US Banks

Six Major UK Banks Pilot Tokenized Sterling Deposits for Settlement Efficiency

Federal Reserve and Major Banks Pilot Tokenized Liability Network Settlement

Incrypthos

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