The Bank of England is testing blockchain features for a new Real Time Gross Settlement (RTGS) service, according to a statement.
“Although the bank has concluded that Distributed Ledger Technology (DLT) is not yet sufficiently mature to provide the core of the next generation of RTGS, it placed a high priority on ensuring that the new service is capable of interfacing with DLT as and when it is developed in the wider sterling markets,” it said.
“Therefore, the bank is undertaking a Proof of Concept (PoC) to understand how a renewed RTGS service could be capable of supporting settlement in systems operating on innovative payment technologies, such as those built on DLT.”
RTGS systems allow tranfers to be processed in real time without linking to other transactions.
BoE will partner with a variety of firms on this project, including Baton Systems, Clearmatics Technologies, R3 and Token. Findings will be published later this year, alongside future plans from BoE regarding RTGS technology.