Distributed ledger technology can improve cross-border payments, the New York Fed and the Monetary Authority of Singapore found in phase two of their joint project, known as Cedar.

The two central banks linked their digital currency ledgers without a central clearing authority or a shared central network, they said on May 19. The payments were automatic, reducing counterparty risk, and end-to-end settlement was achieved in under 30 seconds.

For a typical foreign exchange transaction, their