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RBS completes clearing and settlement mechanism using blockchain

Monday 26 September 2016 09:51 CET | News

The Royal Bank of Scotland has completed development of a clearing and settlement mechanism using the Ethereum distributed ledger.

The aim of this project is to compete with FasterPayments, or at least discover whether or not distributed ledgers have any limitations in this field. Not only blockchain, but also smart contracts are being used to automate the remaining processes. Under the Emerald banner, this blockchain-based trading system is a combination of blockchain technology with smart contracts and explores the creation of a Deferred Net Settlement system.

RBS created a private, faster-moving ledger that focuses on speed and throughput. Talking officially about the trial, bank’s representatives mentioned that the test results evidenced a throughput of 100 payments per second, with 6 simulated banks, and a single trip means time of 3 seconds and maximum time of 8 seconds. This is the level appropriate for a national level domestic payments system.

The blockchain-based national domestic payments system performed beyond expectations, the bank continued, and it will be interesting to see how RBS plans to make this project open source in the coming months. 


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Keywords: RBS, Ethereum, blockchain, smart contracts, innovation, banks, real time payments, settlement, clearing, distributed ledger
Categories: DeFi & Crypto & Web3
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Countries: World
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DeFi & Crypto & Web3