BAFT, ABA’s global transaction banking subsidiary, today announced the publication of two updated best practices guides on the Distributed Ledger Payment Commitment, a global standard for payment commitment that can be used on any blockchain network and can operate across networks.
The new “Business Best Practices” guide and the “Technical Best Practices, Version 1.1” for the DLPC update a prior guide released in August 2020. The updated best practices incorporate industry comments and experience from use in live transactions.
“The DLPC breaks new ground for financial services firms seeking to leverage the unique characteristics of distributed ledger technology,” said BAFT SVP Samantha Pelosi. “Use of the DLPC facilitates the interoperability of disparate blockchain platforms and creates what is currently the only digital negotiable instrument with legal backing. These best practices provide for sound validity under Delaware law, and BAFT continues to advocate for the amendment of laws to grant similar legal status to digital negotiable instruments used in cross-border transactions.”