Bank of England Tests Quant Blockchain for RTGS Sync Upgrade Sandbox Trial

TLDR

• Bank of England invites Quant to test atomic multibank settlement in sandbox
• Trial supports RTGS upgrade through synchronized blockchain automation
• Simulation involves no real money or live production systems
• Model aims to remove partial settlement risk across multiple banks

The Bank of England has taken a new step in its blockchain strategy. It has invited Quant Network to test a treasury automation model in its sandbox environment. The move reflects a pivot toward blockchain programmability within core payment infrastructure.

The test will focus on atomic multibank cash movement. It will support planned upgrades to the United Kingdom’s real-time gross settlement system. The project forms part of the bank’s broader infrastructure modernization efforts.

Quant Network Joins RTGS Synchronization Lab

Quant Network confirmed its participation through its chief executive, Gilbert Verdian. He stated that the Bank of England invited the firm to test an idea inside its synchronization lab. The lab acts as a simulation environment for payment system upgrades.

No real money will be used during the trial. There is no live production system involved. The test does not represent a policy decision by the central bank.

The goal is to examine how atomic settlement could function across multiple banks. The bank is reviewing how blockchain-based programmability can support RTGS upgrades. The focus remains on operational efficiency and payment synchronization.

Verdian said the proposal involves treasury automation for companies using several banks. He explained that many firms move funds between banks in separate steps. Each transfer settles independently under the current structure.

Addressing Partial Settlement Risk

Under existing systems, companies send payments one after another. They must wait for each transfer to settle before initiating the next. Some transactions may fail, while others complete successfully.

Verdian described this issue as partial settlement risk. It occurs when some payments clear and others do not. This can create liquidity and reconciliation challenges for firms.

Quant’s model seeks to eliminate this risk through atomic settlement. All transfers would be initiated as one action. The transactions would settle together or fail together.

The platform would simulate banks reserving funds at the same time. Once all conditions are met, the transfers would commit simultaneously. Treasury records would then update automatically.

This approach aims to reduce operational risk and manual reconciliation. It also seeks to reduce the need for large liquidity buffers. The automation could streamline treasury workflows across institutions.

Infrastructure Modernization Over CBDC Focus

The Bank of England previously explored the idea of a central bank digital currency. Governor Andrew Bailey discussed regulatory standards for stablecoins during that period. The current initiative reflects a shift toward infrastructure modernization.

Rather than launching a digital currency, the bank is examining backend improvements. The synchronization lab allows it to test advanced payment concepts safely. The environment helps assess new technologies without disrupting existing systems.

The RTGS system plays a central role in the United Kingdom’s financial network. It settles high-value payments between banks in real time. Modernizing this system remains a priority for the central bank.

Quant Network’s involvement centers on blockchain interoperability and automation. The test will assess whether programmable settlement can operate within established financial frameworks. It will also measure compatibility with current banking systems.

The Bank of England’s blockchain programmability pivot focuses on strengthening payment infrastructure. The sandbox trial marks a structured step in evaluating atomic settlement models. Further updates may follow after the simulation phase concludes.

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