5 Things to Know as Money Movement Runs on Different Clocks

The practical challenge of digital payments is coordinating accounting when each settlement method can have a different clock.

• The article highlights the challenge of coordinating different 'clocks' or settlement times across various payment systems, even with the adoption of tokenized assets and blockchain technology.
• Examples include tokenized sterling deposits in the UK, the ECB's Pontes tool for wholesale tokenized assets, and SoFiUSD settlement, all illustrating how different components of a transaction can operate on separate schedules.
• This timing discrepancy affects funding, reconciliation, and cross-border transactions, necessitating a re-evaluation of liquidity management and payment processing strategies.

Topics: Payment system integration, Blockchain usage, Legal regulatory, Stablecoin payments remittances, Ethereum evm l 1 s, Securities law classification

Tags: #tokenizedsterlingdeposits #ecbpontes #sofiusd #fednow #fedwire #fxsettlement #conditionalpayments #moneymovement #settlementclocks #centralbankmoney

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Circle Takes FX Onchain With 24/7 Stablecoin Settlement On Arc

TL;DR Circle has launched StableFX on Arc, giving approved institutions 24/7 access to stablecoin-based foreign exchange settlement. The system uses RFQ

• Circle has launched StableFX on its Arc network, enabling 24/7 stablecoin-based foreign exchange settlement for approved institutions.
• The system utilizes RFQ pricing and smart-contract settlement to reduce principal risk through a payment-versus-payment mechanism.
• This initiative aims to integrate traditional financial infrastructure, specifically FX markets, with blockchain technology, using stablecoins as settlement assets.

Topics: Integration with defi, Payment system integration, Asset types, Rwa collateral lending, Stablecoins digital cash, Cross border settlement

Tags: #circle #stablecoin #fxsettlement #arcnetwork #usdc #eurc #paymentversuspayment #institutionalfinance #blockchain

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Chainlink Joins 50+ Banks in Project Pangea for T+0 FX Settlement Push Today

Chainlink launches Project Pangea with 50+ banks to test T+0 FX settlement using stablecoins and ISO 20022.

• Chainlink has launched Project Pangea with over 50 banks to test T+0 (same-day) settlement for foreign exchange (FX) markets.
• The initiative leverages stablecoins, ISO 20022 standards, and existing banking infrastructure like SWIFT for faster, more efficient cross-border transactions.
• This project aims to reduce settlement risk and improve liquidity in the global FX market, which handles trillions in daily trading volume.

Topics: Payment system integration, Institutional adoption, Blockchain usage, Stablecoin payments remittances, Banking depository pilots, Ethereum evm l 1 s

Tags: #chainlink #projectpangea #t0settlement #fxsettlement #stablecoins #iso20022 #foreignexchange #crossborder #banking #swift

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