DvP using CBDC: a “settlement choice model” for securities settlement
Market participants acknowledge the benefits of real-time gross settlement but continue to rely on the operational and liquidity advantages of delayed batch settlement. Acknowledging that reality, this paper proposes a new “best of both worlds” model that allows for a choice of settlement type at the time of trading and offers the ability to settle
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Editorial Team
- December 21, 2021
- 1 minute
Market participants acknowledge the benefits of real-time gross settlement but continue to rely on the operational and liquidity advantages of delayed batch settlement. Acknowledging that reality, this paper proposes a new “best of both worlds” model that allows for a choice of settlement type at the time of trading and offers the ability to settle both gross and netted trades instantly using Central Bank Digital Currency and digital assets on a blockchain infrastructure.
 
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