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Distributed Ledger Technology in Payments, Clearing, and Settlement


  • Anton Badev
  • Maria Baird
  • Timothy Brezinski
  • Clinton Chen
  • Max Ellithorpe
  • Linda Fahy
  • Vanessa Kargenian
  • Kimberley Liao
  • Brendan Malone
  • Jeffrey C. Marquardt
  • David C. Mills
  • Wendy Ng
  • Anjana Ravi
  • Kathy Wang


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.

Suggested Citation

  • Anton Badev & Maria Baird & Timothy Brezinski & Clinton Chen & Max Ellithorpe & Linda Fahy & Vanessa Kargenian & Kimberley Liao & Brendan Malone & Jeffrey C. Marquardt & David C. Mills & Wendy Ng & An, 2016. "Distributed Ledger Technology in Payments, Clearing, and Settlement," Finance and Economics Discussion Series 2016-095, Board of Governors of the Federal Reserve System (U.S.), revised Dec 2016.
  • Handle: RePEc:fip:fedgfe:2016-95
    DOI: 10.17016/FEDS.2016.095

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    Blog mentions

    As found by, the blog aggregator for Economics research:
    1. What Bitcoin Has Become
      by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2017-01-23 19:00:14


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Gerald P. Dwyer, 2017. "Blockchain: a primer," Chapters, in: Benton E. Gup (ed.), The Most Important Concepts in Finance, chapter 2, pages 12-27, Edward Elgar Publishing.
    2. Meyer Aaron & Francisco Rivadeneyra & Samantha Sohal, 2017. "Fintech: Is This Time Different? A Framework for Assessing Risks and Opportunities for Central Banks," Discussion Papers 17-10, Bank of Canada.
    3. Amber Wadsworth, 2018. "Decrypting the role of distributed ledger technology in payments processes," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 81, pages 1-20, May.
    4. Benos, Evangelos & Garratt, Rodney & Gurrola-Perez, Pedro, 2017. "The economics of distributed ledger technology for securities settlement," Bank of England working papers 670, Bank of England.
    5. Carlo Gola & Andrea Caponera, 2019. "Policy issues on crypto-assets," LIUC Papers in Economics 2019-7, Cattaneo University (LIUC).
    6. I. Belarev A. & A. Obaeva S. & И. Беларев А. & А. Обаева С., 2017. "О Распределенном Реестре И Возможности Его Применения // Distributed Ledger And Its Potential Application," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 21(2), pages 94-99.
    7. Andrea Caponera & Carlo Gola, 2019. "Economic and regulatory aspects of crypto-assets," Questioni di Economia e Finanza (Occasional Papers) 484, Bank of Italy, Economic Research and International Relations Area.
    8. Anil Savio Kavuri & Alistair Milne, 2019. "FinTech and the future of financial services: What are the research gaps?," CAMA Working Papers 2019-18, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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