US Banks Launch Pilot Of A DLT-based Network Of Digital Dollar

The Regulated Liability Network (RLN), a proof-of-concept digital money network, was launched by a group of US banks on Tuesday.

According to the group, the platform would take advantage of chances to enhance financial settlements by using distributed ledger technology (DLT), sometimes known as a blockchain.

In addition, commercial banks, central banks, and regulated non-banks like BNY Mellon, Citi, PNC Bank, Swift, TD Bank, Truist, and U.S. Bank would participate. According to the statement:

“The 12-week PoC will test a version of the RLN design that operates exclusively in U.S. dollars where commercial banks issue simulated digital money or “tokens” – representing the deposits of their own customers – and settle through simulated central bank reserves on a shared multi-entity distributed ledger.

The PoC will also test the feasibility of a programmable digital money design that is potentially extensible to other digital assets, as well as the viability of the proposed system within existing laws and regulations.”

According to the group, the project will have a regulatory framework that is in line with current laws requiring to know your customer (KYC) and anti-money laundering measures. The viability of expanding the platform to support additional digital assets like stablecoins will also be investigated.

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