We’re exploring the potential of using synchronisation for our payment system. Synchronisation has many potential benefits including:
- reduced costs and risks in settlement
- greater speed and efficiency.
What do we mean by synchronisation?
At the heart of synchronisation is the concept of ‘atomic settlement’. This means that the transfer of two (or more) assets is linked in such a way as to ensure that the transfer of one asset occurs if and only if the transfer of the other asset (or group of assets) also occurs. So the outcome of synchronised settlement is either all parties successfully exchanging the assets, or no transfer taking place.
Synchronisation could enable the settlement of a payment in sterling central bank money to be coordinated with the transfer of one or more other assets. The other asset(s) could either be:
- another payment in sterling central bank money
- funds on another payments ledger, such as an RTGS service in another currency
- an asset recorded on an external asset ledger.
Learn more about our vision for synchronised settlement in the UK in our background guide.