Distributed Ledger Technology in Payments, Clearing, and Settlement
By David C. Mills Jr. (Federal Reserve Board), Kathy Wang, Brendan Malone, Anjana Ravi, Jeffrey C. Marquardt, Anton I. Badev, Timothy Brezinski (Board of Governors of the Federal Reserve System), Linda Fahy, Kimberley Liao, Vanessa Kargenian, Max Ellithorpe, Wendy Ng (Federal Reserve Banks) & Maria Baird (Federal Reserve Bank of Chicago)
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.
Full Article: Social Science Research Network