UK Banks Celebrate Progress in Regulated Liability Network Trials

UK banks have praised the successful trials of the Regulated Liability Network (RLN), highlighting its potential to revolutionize financial transactions. The RLN promises enhanced transparency and efficiency in the banking sector, marking a significant advancement in financial technology.

UK’s Major Banks Wrap Up Regulated Liability Network Experiment

Innovative Platform for Programmable Money

The UK banks have finished testing the Regulated Liability Network (RLN), showcasing its significant advantages for financial market infrastructure. The RLN, a multi-bank shared ledger platform, supports both traditional bank deposits and their tokenized versions, aiming to boost efficiency and security in the financial sector.

Key Participants and Benefits

A diverse group of major financial institutions took part in this groundbreaking experiment over the summer. Banks such as Barclays, Citi, HSBC, Lloyds, NatWest, Nationwide, Santander, Standard Chartered, Virgin Money, and payment giants Mastercard and Visa were all involved. The experimentation revealed several potential advantages, including:

  • Fraud Reduction: The RLN’s advanced security features could significantly lower the incidence of fraudulent activities.
  • Home Buying Efficiency: By streamlining processes, the RLN could simplify and speed up home purchasing transactions.
  • Cost Reduction for Failed Payments: The network’s enhanced capabilities may reduce the financial impact of payment failures in the UK.

Economic Value and Innovation

UK banks highlights that the RLN, in conjunction with Open Banking, could drive substantial economic value and foster innovation within the market. This platform has the potential to offer new businesses a unified entry point, allowing them to interact more seamlessly with established institutions. Additionally, it promises improvements in payment and settlement systems, providing a robust foundation for future financial advancements.

Regulatory Support and Future Prospects

The participants in the RLN experiment have also affirmed that the UK’s legal and regulatory framework is adequately flexible to accommodate this ‘platform for innovation’. This support is crucial for the successful implementation of the RLN and its long-term benefits.

Peter Left, head of digital and markets innovation at Lloyds and co-chair of the RLN Project, remarked, “Through our collaborative efforts, we have illustrated how this platform aligns with both public and private sector goals. It also delivers significant, long-term advantages for customers and the industry.”

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