The Bank of England has successfully tested the use of distributed ledger technology (DLT) in running large and complex interbank transactions through "Project Meridian". The project, run through the Bank for International Settlements' London innovation hub, used DLT to link the central bank's Real-Time Gross Settlement system with other financial market infrastructures and ledgers, orchestrating the exchange in ownership of funds and assets in a resilient and secure way. The project tested scenarios transferring funds from buyer to seller only if a corresponding asset on a real estate registry moved simultaneously in the opposite direction, but the prototype can be applied to other registries and asset classes, such as foreign exchange.

(By Sandali Handagama)