Real-time, 24\/7 tokenised settlement could radically change intraday liquidity dynamics. On the one hand, instant settlement and round-the-clock operating hours may reduce the need for large buffers. If tokenised money or CBDCs enables near-instant cross-border transfers at any time, banks could potentially free up funds otherwise trapped offshore or overnight. Similarly, a payment on a tokenised network could be synchronised with incoming funds, reducing periods where cash is in limbo.<\/p>\n
A tokenised payment rail with atomic payment versus payment\/delivery versus payment (PvP\/DvP) and smart-contracted conditions can synchronise incoming and outgoing legs in one transaction. That enables just-in-time liquidity use, reduces over-funding, and allows cash to circulate rather than sit immobilised. This model materially lowers daylight funding needs, but it does not remove liquidity risk entirely \u2013 participants still must ensure tokenised funds and eligible collateral are available at execution time and manage fallback credit facilities for stress scenarios.<\/p>\n
However, it should be acknowledged that instant settlement removes netting, possibly increasing intraday liquidity consumption in gross terms. In today\u2019s deferred settlement systems, financial institutions can net off a large volume of payments and only exchange the smaller net difference, conserving liquidity.<\/p>\n
The paradox of real-time finance is that less time delay means lower liquidity tied up after settlement, but also less opportunity to delay payment obligations, which can strain liquidity if not managed properly. Tokenisation increases transaction turnover across the day, but smart contracts, real-time valuation, liquidity-saving sequencing and on-demand intraday funding convert much of that gross activity into reusable liquidity. What is the net effect? With robust legal, custody and interoperability frameworks in place, banks can expect leaner intraday liquidity buffers. This is not because there are fewer payments, but because tokenised assets and real-time plumbing let treasuries fund obligations \u2018just in time\u2019, recycle collateral continuously, and sharply reduce cash-draining transformations.<\/p>\n
\u201cRegulatory developments and industry infrastructure are quickly adapting to support tokenised finance\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Real-time, 24\/7 tokenised settlement could radically change intraday liquidity dynamics. On the one hand, instant settlement and round-the-clock…\n","protected":false},"author":2,"featured_media":23722,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21213],"tags":[572,21214,25309,4734,23702,25308,25307],"class_list":["post-23721","post","type-post","status-publish","format-standard","has-post-thumbnail","category-deutsche-bank","tag-central-banks","tag-deutsche-bank","tag-liquidity","tag-regulation","tag-settlement","tag-tokenisation","tag-tokenised-assets"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/23721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=23721"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/23721\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/23722"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=23721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=23721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=23721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}