Digital money needs interoperable settlement rails, Lynq CEO says

Lynq CEO Jerald David has said institutional finance needs interoperable settlement systems capable of moving cash and collateral 24/7 as firms adopt several forms of digital money. Summary Institutions are likely to use stablecoins, tokenized deposits, CBDCs, and traditional bank money. Separate payment systems can leave capital unavailable where institutions need it. The Bank of England is testing stablecoins and simulated digital pounds in one payment flow. David said settlement infrastructure must keep pace with markets that trade around the clock. In comments shared with crypto.news, David said the Bank of England’s latest digital pound experiment gives an early indication of how institutional markets may use several forms of digital money instead of choosing one option. “I do not expect a single form of digital money to replace all others,” David said. “Stablecoins, tokenized deposits, tokenized money market funds, potentially CBDCs, and traditional bank money are all likely to have different roles depending on the counterparty, jurisdiction, and type of transaction.” His comments follow an Aug. 12 report detailing how NOBO Finance, Dun & Bradstreet, and Polygon Labs join...