Utility Settlement Coin — central-bank-money-backed wholesale settlement across multiple currencies.
"A central bank RTGS participant queuing a high-value payment — the institution is pre-authorized by the central bank."
A Fnality member bank initiates a DvP settlement instruction. All Fnality members are systemically important financial institutions pre-vetted by the Fnality consortium and indirectly by the central banks holding the backing reserves. L4+L5 lit: identity and authorization are policy-enforced. D9 (prudential) applies — these are regulated banks subject to Basel III capital requirements.
"The central bank's RTGS validation — the payment is checked for sufficiency of funds, counterparty authorization, and regulatory compliance before settlement."
Fnality's network layer validates the settlement instruction: counterparty authorization, USC balance sufficiency, sanctions screening, and regulatory compliance checks. Because all participants are consortium members, the compliance surface is narrow but deep — every check runs against bank-grade KYB. L3 Execution lit — validation is code-enforced at the network layer.
"A Fedwire or TARGET2 final settlement — value moves in central bank money with immediate, irrevocable finality."
Utility Settlement Coin transfers on Fnality's permissioned ledger. USC is backed 1:1 by cash held in omnibus accounts at central banks (Bank of England for GBP USC, Bank of Canada for CAD USC, etc.). L1+L2+L3 lit — the full stack below the enforcement line. This is the compliance distinction: settlement in central bank money eliminates counterparty credit risk entirely. No commercial bank risk, no issuer risk — the backing is sovereign.
"The beneficiary bank seeing the RTGS credit — central bank money received, the settlement is final."
The counterparty bank receives USC. L4+L5 lit on the receiving side. The bank can hold USC (effectively holding a claim on central bank money), use it for further DvP settlement, or redeem to fiat via the central bank omnibus account. Recordkeeping obligations attach.
"The central bank's settlement confirmation — the highest possible finality in the financial system."
Settlement is final in the strongest possible sense — backed by central bank money. Both banks hold matching settlement records on the Fnality ledger, anchored to the central bank omnibus account. L5 Application lit only. This is the gold standard for wholesale settlement: regulated consortium, permissioned network, central-bank-money backing, instantaneous finality.
Resolved 5 steps across 1 chain(s). 0 threshold(s) triggered. Frameworks: Common Reporting Standard / FATCA.
Coverage notes: 5 disclosed gap(s).