RTGS
Banking NetworkRTGS (Real-Time Gross Settlement) is a payment system where transactions are settled individually and immediately, eliminating settlement risk between banks.
In an RTGS system, each payment is settled as soon as it is received. There is no batching, no netting, and no delay. Settlement risk (the risk that the other party defaults between trade and settlement) is eliminated because each transfer completes in real time.
Fedwire (US) and CHAPS (UK) are examples of RTGS systems for large-value payments. Their ISO 20022 migrations have already completed (Fedwire July 2025, CHAPS 2023), establishing the domestic RTGS rails that cross-border ISO 20022 corridors rely on as their end-points.
The XRP Ledger treats a validated ledger version as final, and xrpl.org says transactions settle in about 3 to 5 seconds; Hedera's own documentation cites 3 to 5 second absolute finality. Both are the projects' own figures, and neither is an RTGS system.
Crypto Relevance
The XRP Ledger's 3 to 5 second settlement is xrpl.org's own figure. It is a ledger property, not a central bank RTGS, and it does not by itself create demand for XRP.
Related Terms
Fedwire
Fedwire is the US Federal Reserve's real-time gross settlement system for large-value USD transfers, which completed its ISO 20022 migration in July 2025.
SWIFT
Swift describes itself as a cooperative of 11,500+ institutions in 200+ countries and territories that runs the messaging network behind cross-border payments; its core payment messages moved to ISO 20022 in November 2025.
Nostro/Vostro Accounts
Nostro and Vostro accounts are correspondent banking accounts banks maintain at each other to pre-fund cross-border payments — the trapped capital that ODL aims to eliminate.
CBPR+
CBPR+ is the SWIFT-governed ISO 20022 standard that all banks must adopt for cross-border payments, replacing the legacy MT message suite.
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Last updated: 2026-09-29