Distributed Ledger Technology in Payments, Clearing, and Settlement

36 Pages Posted: 7 Dec 2016

See all articles by David C. Mills

David C. Mills

Federal Reserve Board - Payment System Studies

Kathy Wang

Board of Governors of the Federal Reserve System

Brendan Malone

Board of Governors of the Federal Reserve System

Anjana Ravi

Board of Governors of the Federal Reserve System

Jeffrey Marquardt

Board of Governors of the Federal Reserve System

Anton I. Badev

Board of Governors of the Federal Reserve System

Timothy Brezinski

Board of Governors of the Federal Reserve System

Linda Fahy

Federal Reserve Banks - Federal Reserve Bank of New York

Kimberley Liao

Federal Reserve Banks - Federal Reserve Bank of New York

Vanessa Kargenian

Federal Reserve Banks - Federal Reserve Bank of New York

Max Ellithorpe

Federal Reserve Banks - Federal Reserve Bank of New York

Wendy Ng

Federal Reserve Banks - Federal Reserve Bank of New York

Maria Baird

Federal Reserve Bank of Chicago

Date Written: 2016-12

Abstract

Digital innovations in finance, loosely known as fintech, have garnered a great deal of attention across the financial industry. Distributed ledger technology (DLT) is one such innovation that has been cited as a means of transforming payment, clearing, and settlement (PCS) processes, including how funds are transferred and how securities, commodities, and derivatives are cleared and settled. DLT is a term that has been used by the industry in a variety of ways and so does not have a single definition. Because there is a wide spectrum of possible deployments of DLT, this paper will refer to the technology as some combination of components including peer-to-peer networking, distributed data storage, and cryptography that, among other things, can potentially change the way in which the storage, recordkeeping, and transfer of a digital asset is done.

Suggested Citation

Mills, David C. and Wang, Kathy and Malone, Brendan and Ravi, Anjana and Marquardt, Jeffrey and Badev, Anton I. and Brezinski, Timothy and Fahy, Linda and Liao, Kimberley and Kargenian, Vanessa and Ellithorpe, Max and Ng, Wendy and Baird, Maria, Distributed Ledger Technology in Payments, Clearing, and Settlement (2016-12). FEDS Working Paper No. 2016-095. Available at SSRN: https://ssrn.com/abstract=2881204 or http://dx.doi.org/10.17016/FEDS.2016.095

David C. Mills (Contact Author)

Federal Reserve Board - Payment System Studies ( email )

20th and Constitution Ave NW
Washington, DC 20551
United States
202-530-6265 (Phone)
202-872-7533 (Fax)

Kathy Wang

Board of Governors of the Federal Reserve System

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Brendan Malone

Board of Governors of the Federal Reserve System

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Anjana Ravi

Board of Governors of the Federal Reserve System

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Jeffrey Marquardt

Board of Governors of the Federal Reserve System

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Anton I. Badev

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Timothy Brezinski

Board of Governors of the Federal Reserve System

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Linda Fahy

Federal Reserve Banks - Federal Reserve Bank of New York

33 Liberty Street
New York, NY 10045
United States

Kimberley Liao

Federal Reserve Banks - Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Vanessa Kargenian

Federal Reserve Banks - Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Max Ellithorpe

Federal Reserve Banks - Federal Reserve Bank of New York

33 Liberty Street
New York, NY 10045
United States

Wendy Ng

Federal Reserve Banks - Federal Reserve Bank of New York

33 Liberty Street
New York, NY 10045
United States

Maria Baird

Federal Reserve Bank of Chicago

230 South LaSalle Street
Chicago, IL 60604
United States

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