The UK trade association has experimented with the Regulatory Accountability Network
UK Finance, the banking and finance trade association based in the United Kingdom, has announced the launch of a pilot phase focusing on the UK's Regulated Liability Network (RLN). Eleven member organizations are participating.
The test examines technical and legal issues and customer benefits in three use cases. First, it takes into account when paying for physical products in person to reduce online fraud.
It looks at the home buying process to improve transparency for customers to reduce conveyancing fraud – the practice of selling a property to avoid paying off claims made by the lender. The final case study uses digital money for digital bond settlement.
The trials coincide with Project Rosalind, a joint effort between the Bank of Global Settlements and the Bank of England, which was completed in June. It studied the use of Application Programming Interface (API) by banks to interact with Central Bank Digital Currency (CBDC). The feasibility of the UK RLN is examined in a technical sandbox.
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The results are expected to be published this summer. UK Finance launched its breakthrough-stage RLN trial in September.
Barclays, Citi, HSBC, Lloyds Banking Group, MasterCard, Nat West, National International, Santander, Standard Chartered, Virgin Money and Visa are participants in the trial.
RLN launched in November 2022. It places assets and liabilities on the same ledger and focuses on interactions between currencies controlled using blockchain. Peter Graf, head of digital and marketing innovation at Lloyd's Banking Group, said in a statement:
“As a business-driven approach, RLN can unlock new features for customer funds across a range of retail and wholesale use cases.”
In July, the New York Innovation Center, the Federal Reserve Bank, the SWIFT global messaging service and nine major financial institutions completed certification to exchange and settle commercial bank deposit tokens and central bank liabilities using the US CDC. Citi, HSBC and MasterCard were also involved in the UK RLN trial.
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