UK Central Bank Tests Ripple’s Interledger Protocol for Cross-Border Payments

The UK’s central bank has released new details about a proof-of-concept it has developed in partnership with distributed ledger startup Ripple.

AccessTimeIconJul 11, 2017 at 9:00 a.m. UTC
Updated Aug 18, 2021 at 6:28 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The Bank of England has released new details about a proof-of-concept it has developed in partnership with distributed ledger startup Ripple.

Among several fintech proofs-of-concept revealed by the UK central bank yesterday, one test involved Ripple's Interledger protocol, designed to facilitate transactions between different distributed ledger systems.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • The trial centered on a cross-border payment scenario in which "two different currencies" were "executed simultaneously in two different simulated RTGS [real-time gross settlement] systems," with blockchain potentially serving as means for synchronizing the settlement of transactions.

    According to its outline of the proof-of-concept, the Bank of England used the test in part as a springboard to investigate issues around liquidity, stating:

    "Cross-border payments when applied to wholesale markets present different challenges than when compared with retail and corporate transactions, which the Ripple product is designed to handle. The availability of liquidity is one such challenge, and the PoC allowed the Bank and Ripple to begin exploring these questions."

    The bank went on to indicate that it could conduct additional trials in this area "to extend its understanding of the dimensions of the synchronization concept."

    The Bank of England launched its fintech startup accelerator last year as part of a bid to test new technologies including blockchain, and has been trialing solutions for months. While it has stopped short of green lighting any immediate plans to replace any of its internal infrastructure, the bank is planning for its next RTGS system to be compatible with the tech.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.