UK Finance Launches Experimental Phase for Regulated Liability Network (RLN) with Leading Banking Institutions

UK Finance, a renowned banking and finance trade association in the United Kingdom, has embarked on an experimental phase dedicated to exploring the potential of the UK Regulated Liability Network (RLN). This initiative sees the collaboration of eleven member organizations, including prominent financial institutions such as Barclays, Citi, HSBC, Lloyds Banking Group, Mastercard, NatWest, Nationwide, Santander, Standard Chartered, Virgin Money, and Visa.

The experimental phase is designed to delve into three specific use cases, each aimed at examining technical intricacies, legal considerations, and potential customer benefits. The first use case revolves around the implementation of payment-upon-delivery for physical products, with a primary objective of combating fraud in online transactions. Additionally, the initiative will focus on enhancing transparency and reducing conveyance fraud in the homebuying process. Lastly, the experimentation will explore the utilization of digital money for digital bond settlement, showcasing the versatility and potential applications of RLN.

The UK Regulated Liability Network was introduced in November 2022, leveraging blockchain technology to facilitate interoperability between regulated forms of money by consolidating assets and liabilities on the same ledger. Peter Left, Head of Digital and Markets Innovation at Lloyds Banking Group, expressed optimism about RLN, highlighting its potential to unlock new features for customers’ money across various retail and wholesale use cases.

With leading financial institutions actively participating in the experimentation process, the initiative aims to drive innovation and explore the transformative capabilities of RLN in the banking and finance sector. By collaborating on these use cases, UK Finance and its member organizations seek to pave the way for enhanced efficiency, transparency, and security in financial transactions, ultimately benefitting customers and stakeholders alike.

If you like this law news, share it with a friend!