TechFlow news, according to Ledger Insights, the Securities Industry and Financial Markets Association (SIFMA) announced on December 5 that it has completed a significant pilot project for the Regulated Settlement Network (RSN), coordinated under its leadership. Ten financial giants participated in the pilot, including Citigroup, JPMorgan Chase, Mastercard, SWIFT, TD Bank, Bank of America, USDF, Wells Fargo, Visa, and Zions Bancorp. This project expands upon last year's pilot of the Regulated Liabilities Network by adding settlement capabilities for tokenized U.S. Treasury bonds and investment-grade bonds.
The pilot utilized Digital Asset's Canton distributed ledger technology to explore five specific use cases. Among them, an intraday multilateral netting settlement solution provided by a central counterparty (CCP) effectively addressed institutional concerns regarding funding requirements. This functionality is particularly important amid new U.S. Securities and Exchange Commission (SEC) regulations mandating higher levels of central clearing—currently, only 20% of repo transactions are centrally cleared.
The project also validated interoperability with external networks through two methods: coordination via SWIFT and direct API connections. For example, interbank payments conducted on Mastercard's Multi Token Network (MTN) can achieve final settlement using central bank digital currency (CBDC) over the RSN. The project received technical support from the New York Federal Reserve's Center for Innovation (NYIC), coordination services from Deloitte, and legal advisory from Sullivan & Cromwell. DTCC, ISDA, Tassat Group, and other institutions also contributed to the initiative.
