- Hedera is participating in the DLT Innovation Challenge organized by the Bank of England and the Bank for International Settlements Innovation Hub (BISIH).
- The challenge runs through autumn 2025 and focuses on transacting and settling central bank money on external programmable ledgers.
- The initiative tests trust mechanisms in decentralized or externally governed networks without central bank control.
- Hedera offers high security and fast finality with its hashgraph consensus algorithm, operating under a global council governance model.
- This is part of ongoing efforts to explore how distributed Ledger technology can support future financial infrastructure and wholesale settlements.
Hedera is taking part in the DLT Innovation Challenge, a program launched by the Bank of England with support from the Bank for International Settlements Innovation Hub (BISIH) London Centre. The challenge, ongoing until autumn 2025, invites firms to show how wholesale central bank money can be transacted and settled on external programmable ledgers that the Bank of England does not operate.
The DLT Innovation Challenge aims to explore environments where trust is established without direct central bank control of the ledger. Hedera joined the challenge and participated in the showcase event held by the Bank of England and BISIH in October 2025.
According to the organizers, the challenge focuses on four key areas: ensuring settlement finality and security for irreversible, tamper-proof transactions; handling scalability to support high transaction volumes efficiently; balancing network and asset control between decentralization and regulatory needs; and enabling interoperability across financial systems and ledgers.
Hedera is distinguished by its use of a hashgraph consensus algorithm, which achieves asynchronous Byzantine Fault Tolerance (aBFT), considered the highest security standard for distributed systems. Transactions on Hedera finalize in approximately 2.5 to 3.5 seconds, are immutable, and feature predictable, low-cost fees set in U.S. dollars. This capability is relevant to wholesale settlement and central bank digital currency (CBDC) projects.
The network operates under a Council of 31 global organizations spanning six continents and 11 industries. This governance structure provides diversity, accountability, and resilience by having Council members run nodes and oversee decision-making. This setup offers enterprise-grade security combined with transparent, decentralized governance, which suits regulated sectors like banking and financial services.
The DLT Innovation Challenge is part of broader efforts by the Bank of England and BISIH to examine how distributed ledger technology can support the future of money and payments systems.
For more details, visit the Bank of England’s official announcement.
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