OSTTRA and Baton Systems have partnered with Fnality to successfully complete a proof-of-concept integrating Fnality’s digital ledger technology (DLT)-based system into their on-demand FX payment-versus-payment (PvP) settlement orchestration service. The development introduces an asset with central bank-like credit characteristics, recorded on a DLT ledger, enabling 24/7 settlement and enhancing liquidity and risk management.
The project, involving 12 major banks, demonstrates how digital assets can be used alongside commercial bank money for flexible, atomic PvP settlement across varied settlement venues. The Sterling Fnality Wholesale Payment System Test Environment was used to validate GBP transactions, marking a step towards broader adoption and future enhancements to the FX settlement service. Participants benefit from continuous netting and automated settlement orchestration, helping reduce liquidity pressure and support higher transaction volumes. Currently, GBP is the only currency supported within the Fnality ecosystem.
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