RTGS.global Completes Instant Settlement FX Trade
Posted by Colin Lambert. Last updated: December 6, 2023
Settlement company RTGS.global says it has successfully completed the first instant settlement cross-border transaction conducted through its network.
The transaction saw Credo Bank in Georgia and MDO Humo in Tajikistan settle the obligations resulting from two FX trades, payment vs payment (PvP), and use the resulting funds to make two onward payments via the digital settlement service in a matter of seconds. As part of the transaction, the RTGS.global settlement network facilitated a payment from Credo Bank to MDO Humo in Tajikstan somoni (TJS) and from MDO Humo to Credo Bank in Georgian lari (GEL).
Last month RTGS.global announced a number of pilot agreements with early adopters, with Alif Bank and Bank Arvand in Tajikistan, and Universal Capital Bank in Montenegro, joining MDO Humo and Credo Bank in running pilots. The firm says further pilots will be scheduled for the first part of 2024.
“This is a significant moment for RTGS.global in demonstrating how instant atomic settlement can directly solve the historic and emerging challenges associated with cross-border payments and liquidity management”, says Marcus Treacher, executive chair at RTGS.global. “Successfully facilitating frictionless cross-border payments and settlements between two progressive institutions in rapidly growing markets serves as a powerful proof point for how instantaneous settlement has the potential to revolutionise the way money moves around the world, while driving financial inclusion.”
The pilot also saw the first use of RTGS.global’s new screen-based application. “Early in our engagement with smaller and medium sized institutions we identified the need to provide a means to benefit from RTGS.global without the immediate requirement for an extensive integration project,” explains chief product officer, Dirk Cavens. “In collaboration with a specialist third party, we developed a highly configurable, secure and functionally-rich screen-based application, with operational users in both organisations requiring little time and training to familiarise themselves with its intuitive and fully auditable workflows to confidently execute their transactions. Based on recent feedback from within our participant community this application is now perceived by a wide range of institutions as a logical first step in their adoption of the RTGS.global service.”