Settlement cycles have shortened from the 14 days that it took when horses and ships were part of the process to the current norm for many financial transactions of 3 days abbreviated as T+3. The push continues to drive that further down to T+2 and T+1. Straight-Trough-Processing (STP), aims at… Read more »
In 1974 Herstatt, a German bank, failed to meet a settlement transaction with a counterparty resulting in loses to the counterparty. Herstatt was duly punished with the suspension of its banking license. As a consolation, cross-currency settlement risk came to be known as Herstatt risk In a previous post link,… Read more »
On the previous post various challenges faced by a Bitcoin based remittance systems were evaluated. Namely volatility neutralization costs and transaction delays as side-effects of Bitcoin underlying consensus process. In this post we will take a look at Ripple, one of the permissioned ledger systems, as a possible workaround. For an explanation… Read more »