Hedera Listed in Bank of England DLT Innovation Challenge AllinCrypto October 22, 2025
The Bank of England, in partnership with the BISIH London Centre, has committed to a distributed ledger technology innovation challenge, and Hedera is included.
The aim is to explore how central bank money could be settled securely on external, programmable ledgers not operated by the bank itself.
To make this possible, private-sector firms have been invited to demonstrate real-world applications of distributed ledger technologies that can ensure security, finality, scalability, and interoperability in wholesale settlements.
Use Cases for Hedera at the Bank of England
The BoE’s challenge focuses on how DLTs can handle wholesale settlement in environments where trust needs to be derived from the technology itself rather than institutional control.
The tech being able to speak for itself in a possible decentralized way is important when it comes to the Bank of England’s challenge for DLTs. With that in mind, Hedera Hashgraph may be used to:
- Demonstrate the settlement of tokenised central bank money or reserves on an external ledger.
- Test interoperability between the Bank’s Real-Time Gross Settlement (RTGS) renewal program and an external network such as Hedera.
- Explore programmable features like conditional payments and compliance rules embedded directly into transactions.
- And be able to evaluate scalability and security, and showcase how Hedera handles large transaction volumes with low latency and high fault tolerance.
Experiments like these can help determine whether central banks could rely on external DLT networks like Hedera for future financial infrastructures, or whether they must operate internal ledgers themselves.
Similarly, Swift has teamed up with Linea, an Ethereum layer 2, to build their own distributed ledger network as banks and institutional firms look into ledgers for finanical innovation.
Why Hedera Fits the Bank of England’s Vision
Among the listed participants in the Bank of England’s challenge is Hedera Hashgraph, an enterprise-grade DLT network with Shinhan Bank and Standard Bank already on the Hedera Council.
Hedera’s inclusion in the challenge aligns with its reputation as a platform designed for enterprise and government usage. The Hashgraph consensus allows for quick transaction finality and robust security, known for being one of the most secure networks in the web3 industry.
These attributes are vital for wholesale settlement systems where large-value transactions must be executed with precision and reliability, able to withstand any possible attacks or slowdowns.
Hedera’s predictable performance and low-cost transactions also make it well-suited for testing how central bank money can be moved seamlessly across decentralized and centralized systems without compromising on trust.
The Hedera Council, run by a global council of enterprises and organizations, may aid HBAR when it comes to the Bank of England in choosing a network to possibly work with. There could even be a chance that BoE joins the Hedea Council.
This could make Hedera an ideal testing ground for the Bank of England’s exploration into how decentralised and externally governed networks can support critical financial infrastructure while maintaining compliance.
Hedera and Financial Infrastructure
If the BoE’s experiments clearly show that Hedera Hashgraph can meet institutional-grade settlement standards, it would be a major milestone for the network.
Essentially, Hedera would become a trusted infrastructure layer for central bank digital currency (CBDC) experiments, tokenised asset settlements, and future payment systems.
In Australia, Hedera is being utilized in Project Acacia, led by the Reserve Bank of Australia for CBDC testing. This additional validation could encourage other central banks and financial institutions to explore Hedera for regulated applications.
For the broader Hedera ecosystem, HBAR’s involvement highlights how public, permissioned ledgers can play a role in government finance.
The post Hedera Listed in Bank of England DLT Innovation Challenge first appeared on AllinCrypto.
