Distributed Ledger Technology in Payments, Clearing, and Settlement

Authors:
  • ABAnton Badev
    Anton Badev
  • MBMaria Baird
    Maria Baird
  • TBTimothy Brezinski
    Timothy Brezinski
  • CCClinton Chen
    Clinton Chen
  • MEMax Ellithorpe
    Max Ellithorpe
  • LFLinda Fahy
    Linda Fahy
  • VKVanessa Kargenian
    Vanessa Kargenian
  • KLKimberley Liao
    Kimberley Liao
  • BMBrendan Malone
    Brendan Malone
  • JMJeffrey C. Marquardt
    Jeffrey C. Marquardt
  • DMDavid C. Mills
    David C. Mills
  • WNWendy Ng
    Wendy Ng
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  • 1 January 2016
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.
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