- The UK Central Bank has integrated the Interledger Protocol into two RTGS systems.
- The solution from Ripple has enabled interconnectivity between registry entries. The test was successful.
The Bank of England published a paper titled Ripple – Exploring the synchronsed settlement of payments using the Interledger Protocol. This is a proof-of-concept report on the use of the company’s ILP system.
Among other things, the papers say the regulator has successfully deployed the solution in two supervised Real-time gross settlement (RTGS) models.
“RTGS is an ecosystem in which institutional counterparties hold their bank accounts. It allows certain liquidity to be deposited and exchanged with other participants,” the report explained.
ILP Ripple, in turn, is a protocol for interconnecting registry entries. It provides interoperability and could potentially provide a bridge between counterparties, according to a post on the Interledger Protocol Foundation’s website.
Neither the central bank nor Ripple has commented on the situation yet.
After the company’s partial court victory against the U.S. Securities and Exchange Commission, the firm’s general counsel Stu Alderoti said he expected a surge in demand for corporate products.
In late July 2023, Ripple announced plans to obtain a license in the United Kingdom. It is not known at this time whether this is related to the ILP system test.
At the same time, the company participated in a project by the Palauan authorities to issue a national stablecoin. Ripple is working on a similar initiative in Colombia.
Ripple is working on a similar initiative in Colombia.