The Bank of England and the Bank for International Settlements Innovation Hub (BISIH) London Centre have selected Hedera as one of the distinguished participants in their DLT Innovation Challenge. This initiative brings together leading technology firms to explore how central bank money can operate on external programmable ledgers. The challenge marks a significant step toward integrating traditional banking systems with modern distributed ledger technology.
Hedera is proud to take part in the @bankofengland and @BIS_org DLT Innovation Challenge, exploring how central bank money could be transacted on external programmable ledgers.
— Hedera (@hedera) October 24, 2025
Hedera looks forward to contributing insights on the role of DLT in the future of financial… pic.twitter.com/CJIUThF3WU
Understanding the DLT Innovation Challenge
The challenge focuses on demonstrating how central bank money can securely transact on external ledgers not controlled by the Bank of England. This unique approach examines environments where trust mechanisms must extend beyond central bank control. Participants will showcase their technical capabilities through virtual deep-dive sessions with experts from September 2025. This program creates opportunities for investigating settlement finality, security protocols, and scalability in DLT systems.
Hedera’s Role in Shaping Financial Infrastructure
Hedera joins an elite group of nine other participants, including major players like Circle, HSBC, and Digital Asset with KPMG. The collaboration enables Hedera to demonstrate its technological prowess in handling central bank money transactions. The challenge provides a platform for exploring how Hedera’s network can support essential features like settlement finality and tamper-proof transactions. This initiative aligns with Hedera’s mission to create efficient, secure, and scalable distributed ledger solutions for the financial sector.
Advancing the Future of Wholesale Settlements
The DLT Innovation Challenge represents part of a broader initiative to modernize wholesale settlement systems. The Bank of England has implemented several forward-thinking programs, including the renewal of their Real-Time Gross Settlement (RTGS) service. This service now features Omnibus Accounts supporting tokenized asset settlement in central bank money. The challenge explores potential integration between traditional banking infrastructure and innovative DLT platforms. These developments could transform how financial institutions handle wholesale settlements and digital assets.
Transforming Financial Technology Landscape
The partnership between traditional banking institutions and DLT platforms signals a significant shift in financial technology. This challenge creates opportunities for exploring new settlement models and improving financial market efficiency. The initiative demonstrates how central banks adapt to emerging technologies while maintaining system stability. The outcomes from this challenge will likely influence future developments in central bank digital currencies and digital asset markets. Financial institutions worldwide will watch these developments closely as they shape the future of monetary systems.
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