According to Deep Tide TechFlow news and Ledger Insights, the Securities Industry and Financial Markets Association (SIFMA) announced on December 5th the completion of an important pilot project for a regulated settlement network (RSN) under its coordination. Participating institutions include ten financial giants such as Citigroup, JPMorgan Chase, Mastercard, SWIFT, Toronto-Dominion Bank, Bank of America, USDF, Wells Fargo, Visa, and Zions Bancorp. This project is an extension of last year's pilot for a regulated liability network, adding settlement functionality for tokenized government bonds and investment-grade bonds.
The pilot utilized Digital Asset's Canton distributed ledger technology and explored five specific application scenarios. Among them, a same-day multi-period net settlement solution provided by a central counterparty (CCP) effectively addresses institutions' concerns about liquidity needs. This functionality is particularly important in the context of the new SEC regulations requiring an increase in the central clearing ratio. Currently, only 20% of repurchase transactions are centrally cleared.
The project also validated interoperability with external networks, including two methods: coordination through SWIFT and direct connection via API. For example, interbank payments conducted on the Mastercard Multi Token Network (MTN) can be settled finally using central bank digital currencies through the RSN network. The project received technical support from the New York Federal Reserve's Innovation Center (NYIC), with Deloitte providing coordination services and Sullivan & Cromwell responsible for legal consulting. Institutions such as DTCC, ISDA, and Tassat Group also contributed to the project.