Systems and methods for token-based cross-currency interoperability

Abstract

[0006] A system and method for token-based cross-currency interoperability is disclosed. In one embodiment, a method for conducting a token-based cross-currency transaction at a first financial institution information processing device having at least one computer processor includes: (1) receiving a transaction initiation request from a first party for a transaction amount to a second party; (2) deducting the transaction amount from a fiat currency account of the first party; (3) creating a token amount of tokens for the transaction amount; (4) writing the token amount to a distributed ledger; and (5) transferring the token amount of tokens to a second financial institution for the second party.

Description

[Technical field]

[0001] Related Applications

[0001] This application claims the benefit of U.S. Provisional Patent Application No. 62 / 725,331, filed August 31, 2018, the disclosure of which is incorporated herein by reference in its entirety.

[0002]

[0002] The present disclosure relates generally to systems and methods for token-based cross-currency interoperability. [Background technology]

[0003]

[0003] As more financial technology companies enter the cross-border payments space, multiple types of digital tokens are emerging that are difficult to transact across borders and platforms because they are not interoperable. Summary of the Invention [Means for solving the problem]

[0004]

[0004] A system and method for token-based cross-currency interoperability is disclosed. In one embodiment, a method for conducting a token-based cross-currency transaction in a first financial institution information processing device having at least one computer processor includes (1) receiving a transaction initiation request from a first party for a transaction amount to a second party, (2) deducting the transaction amount from a fiat currency account of the first party, (3) creating a token amount of tokens for the transaction amount, (4) writing the token amount to a distributed ledger, and (5) transferring the token amount of tokens to a second financial institution for the second party.

[0005] In one embodiment, a first party may operate in a first currency and a second party may operate in a second currency.

[0006] In one embodiment, the token amount may be created in a standard currency.

[0006]

[0007] In one embodiment, the first currency and the standard currency may be the same.

[0008] In one embodiment, the fiat account may include a line of credit.

[0009] In one embodiment, the second financial institution may credit the token amount to the second party's account.

[0007]

[0010] In one embodiment, the distributed ledger may include an immutable and cryptographically verifiable distributed ledger.

[0011] According to another embodiment, a method for conducting a token-based cross-currency transaction in a first financial institution information processing device having at least one computer processor may include (1) receiving from a second financial institution a token amount of tokens for a first party to second party transaction; (2) depositing the token amount into a fiat currency account of the second party; and (3) writing the deposit of the token amount to a distributed ledger.

[0008]

[0012] In one embodiment, depositing the token amount into the second party's fiat currency account may include redeeming the token amount for fiat currency.

[0013] In one embodiment, the method may further include discarding tokens of the token amount.

[0009]

[0014] According to another embodiment, a method for conducting a token-based cross-currency transaction in a first financial institution information processing device having at least one computer processor can include (1) receiving a transaction initiation request from a first party to a second party for a transaction amount in the first currency, (2) deducting a first token amount of tokens for the transaction amount from an electronic wallet of the first party, and (3) initiating the transaction by writing the first token amount to a distributed ledger. The second financial institution can exchange the first token amount of the first currency for a standard token amount of a standard currency, exchange the standard token amount of the standard currency for a second token amount of the second currency, and transfer the second token amount of the second currency to a third financial institution for the second party.

[0010]

[0015] In one embodiment, the method may further include issuing a token of the first currency to the first party's electronic wallet.

[0016] In one embodiment, the step of deducting the first token amount of tokens related to the transaction amount from the first party's electronic wallet may include deducting the first token amount of tokens related to the transaction amount from a line of credit of the first party.

[0011]

[0017] In one embodiment, the first currency and the standard currency may be the same currency.

[0018] In one embodiment, the first financial institution and the second financial institution may be the same.

[0019] In one embodiment, the second financial institution and the third financial institution may be the same.

[0012]

[0020] In order to facilitate a more complete understanding of the present invention, reference is now made to the accompanying drawings, in which: [Brief description of the drawings]

[0013] [Figure 1]

[0021] FIG. 1 is a diagram disclosing a system for token-based cross-currency interoperability, according to one embodiment. [Diagram 2]

[0022] FIG. 2 discloses a method for conducting token-based cross-currency transactions, according to one embodiment. [Diagram 3]

[0023] FIG. 3 discloses a method for settlement of token-based cross-currency transactions, according to another embodiment. [Figure 4]

[0024] FIG. 4 is a diagram disclosing a system for token-based cross-currency interoperability, according to one embodiment. [Diagram 5]

[0025] FIG. 5 discloses a method for conducting token-based cross-currency transactions, according to one embodiment. DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0014]

[0026] Systems and methods for token-based cross-currency interoperability are disclosed. In embodiments, a token bridge between currencies may be used. The token bridge may be based on US dollars, and may use other currencies as needed and / or desired. For example, a financial institution issuing a token may offer foreign exchange between US dollar tokens and other tokenized and non-tokenized currencies.

[0015]

[0027] In one embodiment, once the tokens are created, they may be made perpetual so that they can be used as currency, earn interest, etc. For example, the tokens may be cash settled at the end of the day in the future based on positions, etc.

[0016]

[0028] With reference to Figure 1, a system for token-based cross-currency interoperability is disclosed, according to one embodiment. The system 100 may include multiple customers (e.g., Customer A 110 and Customer B 140) and multiple banks (e.g., Bank A 120 and Bank B 130). Although the customers 110, 140 are shown as individuals, it should be appreciated that the customers 110, 140 may be any suitable parties, including individuals, groups of individuals, organizations, businesses, etc.

[0017]

[0029] Customer 110 may be associated with token wallet 115, and customer 140 may be associated with token wallet 145. Token wallets 115 and 145 may be maintained in a distributed ledger (not shown). In one embodiment, token wallets 115 and 145 may store tokens representing currencies.

[0018]

[0030] Bank 120 and bank 130 can be associated with customers 110 and 140, respectively. Each bank can facilitate the creation, movement, and destruction of tokens representing a currency. In one embodiment, customer 110 and bank 120 can operate primarily in a first currency, and customer 140 and bank 130 can operate in a second currency.

[0019]

[0031] In one embodiment, bank 120 and bank 130 may participate as nodes in a distributed ledger, and each bank 120 and 130 may maintain a copy of the distributed ledger (e.g., a copy of ledgers 125 and 135).

[0020]

[0032] Although FIG. 1 shows two banks, it should be appreciated that more banks can participate as needed and / or desired.

[0033] In one embodiment, bank 120 and bank 130 may be the same bank.

[0021]

[0034] In one embodiment, additional networks may be provided, such as a payment network (not shown).

[0035] With reference to Figure 2, a method for implementing a token-based cross-currency transaction is disclosed, according to one embodiment. In this embodiment, the transaction may be a cross-border transaction, but it may also be within the same currency (e.g., US Dollar).

[0022]

[0036] At step 205, Customer A, a customer of Bank A, may initiate a payment of amount A to Customer B.

[0037] In step 210, Bank A may debit Customer A's account for the amount A. In one embodiment, this may be a draw down from Customer A's credit line.

[0023]

[0038] In step 215, Bank A may create an amount A of tokens in a standard currency (e.g., US Dollars) and may write the transaction to a distributed ledger, such as a blockchain-based ledger. In one embodiment, if Customer A and Bank A operate primarily in a currency other than US Dollars, any necessary currency conversions may be performed.

[0024]

[0039] In one embodiment, any cryptographically verifiable and immutable ledger may be used as needed and / or desired. Examples include blockchain-based ledgers, Ethereum-based ledgers, etc.

[0025]

[0040] In step 220, Bank A can move tokens to Bank B, posting this move to the distributed ledger.

[0041] At step 225, Bank B may receive the tokens, and at step 130, Bank B may credit the amount of the tokens to Customer B's account. In one embodiment, Customer B and Bank B may operate primarily in currencies other than US dollars and may perform any necessary currency conversions.

[0026]

[0042] In step 230, Customer B can redeem the tokens for currency.

[0043] With reference to Figure 3, a method for settlement of a token-based cross-currency transaction is disclosed, according to one embodiment. At step 305, upon settlement, Bank B may redeem the token with Bank A for a standard currency, such as US Dollars.

[0027]

[0044] At step 310, Bank A may destroy the amount of redeemed tokens in the distributed ledger. This may be in any suitable manner.

[0045] In step 315, Bank A can settle with Bank B by transferring this amount to Bank B. This may be a standard cash transfer.

[0028]

[0046] 4, a system for token-based cross-currency interoperability is disclosed according to another embodiment. System 400 can include multiple customers (e.g., Customer A 410 and Customer B 440) and multiple banks (e.g., Bank A 420, Bank B 430, and Bank X 450). Customers 410, 440 can be similar to customers 110 and 140 described above, and banks 420 and 430 can be similar to banks 120 and 130 described above.

[0029]

[0047] Bank 450 may provide foreign exchange services for the transaction. In one embodiment, bank 450 may also be a node in the distributed ledger and may maintain a copy of the distributed ledger 455.

[0030]

[0048] In one embodiment, additional networks may be provided, such as a payment network (not shown).

[0049] With reference to Figure 5, a method for conducting a token-based cross-currency transaction is disclosed, according to one embodiment. In this embodiment, the transaction may be a cross-border transaction and may be in different currencies (e.g., MXN to INR).

[0031]

[0050] In step 505, customer A (e.g., in Mexico) can initiate a payment of an amount of currency A to customer B (e.g., in India) in currency B. For example, the payment may be from MXN to INR.

[0032]

[0051] Currency A Token Bank and Currency B Token Bank may hold Customer A's and Customer B's gold in their own specific fiat currencies, respectively. Both Currency A Token Bank and Currency B Token Bank may issue tokens representing their own fiat currencies, for example, using the method of FIG. 2.

[0033]

[0052] At step 510, Wallet A of Customer A may deduct the amount from Customer A's account. In one embodiment, Wallet A may deduct the amount from Customer A's line of credit. In one embodiment, Wallet A may be any suitable electronic wallet that can be tracked in a distributed ledger.

[0034]

[0053] In this embodiment, a wallet is disclosed, but it should be understood that each customer may instead have their own bank and account. Regardless of whether a wallet or account is used, the tokens are backed by assets in the anchor bank (e.g., Currency A Token Bank).

[0035]

[0054] At step 515, wallet A may initiate a transfer of an amount of tokens of currency A in the distributed ledger.

[0055] In response to Wallet A initiating a move on the distributed ledger, Currency A Token Bank can create and redeem tokens in Currency A.

[0036]

[0056] In step 520, Bank X may provide foreign exchange rates and liquidity by exchanging standard currency tokens (e.g., US Dollar tokens) for Currency A tokens, and then exchanging the standard currency tokens for Currency B tokens.

[0037]

[0057] Bank B may create and redeem Currency B tokens, at step 525. Wallet B then receives Currency B tokens from Bank A.

[0058] At step 530, Bank B may credit Customer B with Currency B tokens.

[0038]

[0059] It should be noted that although embodiments may show token creation and redemption occurring as part of a transaction, token creation and / or redemption may occur at any suitable time. For example, tokens may be created prior to a transaction based on cash collateral and / or credit facilities, and there may be a reduction in token balances during the initiation and execution of a transaction.

[0039]

[0060] In one embodiment, token creation and / or redemption may occur independently of trading, and trading may occur independently of token creation and / or redemption.

[0061] While this disclosure is in the context of tokenized cash or currency, it should be understood that credit, collateral, or other types of assets may also be tokenized as needed and / or desired.

[0040]

[0062] In embodiments, the representation of cash or currency as a token can facilitate other common banking services, particularly "Delivery versus Payment" or "DVP" settlement. DVP is a settlement system that provides for a cash payment to be made prior to or simultaneously with the delivery of securities and / or assets. The method for issuing fiat currency on a transaction ledger may be used to issue and settle any type of security or asset by tokenizing the principal and / or interest.

[0041]

[0063] For example, a buyer may use the tokenized currency to affect a secondary transaction of debt securities. The tokenized currency may be exchanged for security interest ownership, and the distributed ledger may keep a record of the transfer of ownership of the securities and the parties' respective cash positions. Upon execution, the transaction is written to the distributed ledger for clearing. After clearing, the tokenized currency may be held or settled for actual fiat currency as described above.

[0042]

[0064] Below, general aspects of embodiments of the systems and methods of the present invention are described.

[0065] The inventive system or a portion of the inventive system may be in the form of a "processing machine", such as, for example, a general purpose computer. The term "processing machine" as used herein should be understood to include at least one processor using at least one memory. The at least one memory stores a set of instructions. The instructions may be permanently or temporarily stored in one or more memories of the processing machine. The processor executes the instructions stored in the one or more memories to process data. The set of instructions may include various instructions to perform a particular task or tasks, such as those described above. Such a set of instructions to perform a particular task may be characterized as a program, a software program, or simply software.

[0043]

[0066] In one embodiment, the processing machine may be a special purpose processor.

[0067] As noted above, a processing machine executes instructions stored in one or more memories to process data. This processing of data may, for example, be in response to commands by one or more users of the processing machine, in response to previous processing, in response to requests by another processing machine, and / or other input.

[0044]

[0068] As mentioned above, the processing machine used to implement the present invention can be a general-purpose computer. However, the processing machine described above can utilize any of a wide variety of other technologies, including special purpose computers, e.g., computer systems including microcomputers, minicomputers, or mainframes, programmable microprocessors, microcontrollers, peripheral integrated circuit elements, CSICs (customer specific integrated circuits) or ASICs (application specific integrated circuits) or other integrated circuits, logic circuits, digital signal processors, programmable logic devices such as FPGAs, PLDs, PLAs, or PALs, or other devices or configurations of devices capable of implementing the steps of the process of the present invention.

[0045]

[0069] The processing machine used to implement the present invention may utilize a suitable operating system. Thus, embodiments of the present invention may include a processing machine running an iOS operating system, an OS X operating system, an Android operating system, a Microsoft Windows operating system, a Unix operating system, a Linux operating system, a Xenix operating system, an IBM AIX operating system, a Hewlett-Packard UX operating system, a Novell Netware operating system, a Sun Microsystems Solaris operating system, an OS / 2 operating system, a BeOS operating system, a Macintosh operating system, an Apache operating system, an OpenStep operating system, or another operating system or platform.

[0046]

[0070] It is understood that in order to implement the method of the present invention as described above, it is not necessary that the processor and / or memory of the processing machine are physically located at the same geographic location. That is, each of the processors and memories used by the processing machine may be located at geographically separate locations and communicatively connected in any suitable manner. In addition, it is understood that each of the processors and / or memories may be configured in different physical devices. Thus, it is not necessary that the processor is a single device at one location and the memory is another single device at another location. That is, it is contemplated that the processor may be two devices at two different physical locations. The two separate devices may be connected in any suitable manner. In addition, the memory may include two or more portions of the memory at two or more physical locations.

[0047]

[0071] To further explain, the processing as described above is performed by various components and various memories. However, it is understood that the processing performed by two separate components as described above may be performed by a single component according to further embodiments of the present invention. Furthermore, the processing performed by one separate component as described above may be performed by two separate components. Similarly, the memory storage performed by two separate memory portions as described above may be performed by a single memory portion according to further embodiments of the present invention. Furthermore, the memory storage performed by one separate memory portion as described above may be performed by two memory portions.

[0048]

[0072] Further, various technologies may be used to provide communication between the various processors and / or memories, and to enable the processors and / or memories of the present invention to communicate with any other entity, i.e., to obtain further instructions or to access and use a remote memory store. Such technologies used to provide such communication may include, for example, a network, the Internet, an intranet, an extranet, a LAN, Ethernet, wireless communication via a cell tower or satellite, or any client-server system that provides communication. Such communication technologies may use any suitable protocol, such as, for example, TCP / IP, UDP, or OSI.

[0049]

[0073] As mentioned above, a set of instructions may be used in the process of the present invention. The set of instructions may be in the form of a program or software. The software may be in the form of, for example, system software or application software. The software may also be in the form of, for example, a collection of separate programs, a program module within a larger program, or a portion of a program module. The software used may also include modular programming in the form of object-oriented programming. The software tells the processing machine what to do with the data being processed.

[0050]

[0074] It is further understood that the instructions or sets of instructions used in the implementation and operation of the present invention may be in any suitable form such that a processing machine can read the instructions. For example, the instructions forming a program may be in the form of a suitable programming language that is converted into machine code or object code to enable one or more processors to read the instructions. That is, written lines of programming code or source code in a particular programming language are converted into machine code using a compiler, assembler, or interpreter. The machine code is, for example, binary coded machine instructions that are specific to a particular type of processing machine, i.e., a particular type of computer. The computer understands the machine code.

[0051]

[0075] Any suitable programming language may be used in accordance with various embodiments of the present invention. By way of example, programming languages ​​used may include, for example, assembly language, Ada, APL, Basic, C, C++, COBOL, dBase, Forth, Fortran, Java, Modula-2, Pascal, Prolog, REXX, Visual Basic, and / or JavaScript. Furthermore, it is not necessary that a single type of instruction or a single programming language be utilized in connection with the operation of the systems and methods of the present invention. Rather, any number of different programming languages ​​may be utilized as needed and / or desired.

[0052]

[0076] Similarly, the instructions and / or data used in practicing the present invention may utilize any compression or encryption technique or algorithm, as may be desired. An encryption module may be used to encrypt the data. Additionally, files or other data may be decrypted using, for example, an appropriate decryption module.

[0053]

[0077] As mentioned above, the present invention can be embodied in the form of a processing machine, including, for example, a computer or computer system including at least one memory, by way of example. It should be understood that the set of instructions, i.e., software, that enables the computer operating system to carry out the above-mentioned operations, may be included in any of a wide variety of one or more media, as desired. Furthermore, the data processed by the set of instructions may also be included in any of a wide variety of one or more media. That is, the particular medium within the processing machine utilized to hold the set of instructions and / or data used in the present invention, i.e., memory, may take, for example, any of a variety of physical forms or transmission media. By way of example, the medium may be in the form of paper, transparency, compact disc, DVD, integrated circuit, hard disk, floppy disk, optical disk, magnetic tape, RAM, ROM, PROM, EPROM, wire, cable, fiber, communication channel, satellite transmission, memory card, SIM card, or other remote transmission, as well as any other medium or source of data that can be read by the processor of the present invention.

[0054]

[0078] Furthermore, the memory or memories used in a processing machine implementing the present invention may be in any of a wide variety of forms that enable the memory to hold instructions, data, or other information, as desired. Thus, the memory may be in the form of a database for holding data. The database may use any desired file organization, such as, for example, a flat file organization or a relational database organization.

[0055]

[0079] In the systems and methods of the present invention, various "user interfaces" are utilized to allow a user to interface with one or more processing machines used to implement the present invention. As used herein, a user interface includes any hardware, software, or combination of hardware and software used by a processing machine that allows a user to interact with the processing machine. A user interface may be in the form of, for example, a dialog screen. A user interface may further include any of a mouse, a touch screen, a keyboard, a keypad, a voice reader, a voice recognizer, a dialog screen, a menu box, a list, a check box, a toggle switch, a push button, or any other device that allows a user to receive information regarding the operation of the processing machine as the other device processes a set of instructions and / or provides information to the processing machine. Thus, a user interface is any device that provides communication between a user and a processing machine. Information provided by a user to a processing machine through a user interface may be in the form of, for example, a command, a selection of data, or some other input.

[0056]

[0080] As discussed above, a user interface is utilized by a processing machine that executes a set of instructions, such that the processing machine processes data for a user. A user interface is generally used by a processing machine to interact with a user to convey information or receive information from the user. However, it should be understood that in accordance with some embodiments of the systems and methods of the present invention, it is not necessary for a human user to actually interact with a user interface utilized by a processing machine of the present invention. Rather, it is also contemplated that a user interface of the present invention may interact, i.e., convey information and receive information, with another processing machine rather than a human user. Thus, the other processing machine may be considered a user. Additionally, it is contemplated that a user interface utilized in the systems and methods of the present invention may interact partially with another processing machine or machines and partially with a human user.

[0057]

[0081] It will be readily understood by those skilled in the art that the present invention is susceptible to a wide range of utility and applications. Numerous embodiments and adaptations of the present invention other than those described herein, as well as numerous variations, modifications, and equivalents, will be apparent from, or will reasonably be suggested by, the present invention and the foregoing description of the invention without departing from the spirit or scope of the invention.

[0058]

[0082] Thus, while the present invention has been described in detail herein with reference to exemplary embodiments, it should be understood that the disclosure is merely illustrative and exemplary of the invention, and is made to provide an enabling disclosure of the invention. Thus, the foregoing disclosure is not intended to be construed as limiting the invention or otherwise excluding any other such embodiments, adaptations, variations, modifications, or equivalents.

Claims

1. 1. A computer-based method for conducting a token-based cross-currency transaction, comprising: receiving, by a first computer program executed by an information processing device of a first financial institution having at least one computer processor, a transaction initiation request from a first party to send an amount of a first fiat currency to a second party, the second party receiving an equivalent of the amount in a second fiat currency, the first fiat currency and the second fiat currency being different currencies, and the first financial institution participating as a first node of a plurality of nodes in a distributed ledger network; deducting, by the first computer program, an amount of the first fiat currency from a first account of the first party, the first account being in the first fiat currency; creating, with the first computer program, a first token amount for the first fiat amount and writing the first token to a copy of a distributed ledger for the first financial institution in the distributed ledger network, the distributed ledger comprising a cryptographically verifiable and immutable blockchain-based distributed ledger; converting the first token into a third token by a third computer program for a third financial institution, the third token being associated with a third legal tender different from the first legal tender and the second legal tender, and the third financial institution participating as a third node of the plurality of nodes in the distributed ledger network; converting, by the third computer program, the third token into a second token, the second token being associated with the second fiat currency; writing, by the third computer program, the second token to a copy of the distributed ledger for the third financial institution in the distributed ledger network; receiving the second token from a copy of the distributed ledger for a second financial institution to which the second token has been written by a second computer program for the second financial institution, the second financial institution participating as a second one of the plurality of nodes in the distributed ledger network; converting, by the second computer program, the second tokens into the second fiat currency; redeeming, by the second computer program, the second tokens for the second fiat amount to a second account of the second party; Including, changes to one of the copy of the distributed ledger for the first financial institution, the copy of the distributed ledger for the second financial institution, or the copy of the distributed ledger for the third financial institution are reflected in the other copies of the distributed ledger; The method, wherein the first token and the second token are not interoperable and not directly interchangeable.

2. The method of claim 1 , wherein the first account comprises a line of credit account.

3. 1. A computer-based system for conducting token-based cross-currency transactions, comprising: a first financial institution information processing device for a first financial institution, the first financial institution information processing device having at least one computer processor and executing a first computer program; a second financial institution information processing device for a second financial institution, the second financial institution information processing device having at least one computer processor and executing a second computer program; a third financial institution information processing device for a third financial institution, the third financial institution information processing device having at least one computer processor and executing a third computer program; a distributed ledger network in which the first computer program, the second computer program, and the third computer program communicate, in which the first financial institution participates as a first node in the distributed ledger network, the second financial institution participates as a second node in the distributed ledger network, and the third financial institution participates as a third node in the distributed ledger network; Equipped with the first computer program receives a transaction initiation request from a first party to send an amount of a first fiat currency to a second party and receives the amount in a second fiat currency from the second party, the first fiat currency and the second fiat currency being different currencies; the first computer program deducts from the first party's electronic wallet an amount of the first fiat currency, the first account being in the first fiat currency; the first computer program creates a first token for the amount of the first fiat currency and writes the first token to a copy of a distributed ledger for the first financial institution, the distributed ledger comprising a cryptographically verifiable and immutable blockchain-based distributed ledger; the third computer program converts the first token into a third token, the third token being associated with a third fiat currency different from the first fiat currency and the second fiat currency; the third computer program converts the third token into a second token, the second token being associated with the second fiat currency; the third computer program writes the second token to a copy of the distributed ledger for the third financial institution in the distributed ledger network; the second computer program receives the second token from a copy of the distributed ledger for the second financial institution to which the second token is posted; the second computer program converting the second tokens into the second fiat currency; the second computer program redeems the converted token amount to a second account of the second party; changes to one of the copy of the distributed ledger for the first financial institution, the copy of the distributed ledger for the second financial institution, or the copy of the distributed ledger for the third financial institution are reflected in the other copies of the distributed ledger; The system wherein the first token and the second token are not interoperable and cannot be directly exchanged.

4. The system of claim 3 , wherein the first account comprises a line of credit account for the first party.

5. 4. The system of claim 3, wherein the first financial institution and the second financial institution are the same.

6. A non-transitory computer-readable medium having instructions stored thereon, which, when read and executed by one or more computer processors, receiving a transaction initiation request from a first party in a distributed ledger network to send an amount of a first fiat currency to a second party, the second party receiving an equivalent of the amount in the second fiat currency, the first fiat currency and the second fiat currency being different currencies; deducting an amount of the first fiat currency from a first account of the first party, the first account being in the first fiat currency; creating a first token amount for the first fiat amount and writing the first token to a copy of a distributed ledger for a first financial institution in the distributed ledger network, the distributed ledger comprising a cryptographically verifiable and immutable blockchain-based distributed ledger; converting the first token into a third token, the third token being associated with a third fiat currency different from the first fiat currency and the second fiat currency; converting the third token into a second token, the second token being associated with the second fiat currency; writing the second token to a copy of the distributed ledger for a third financial institution in the distributed ledger network; receiving, for a second financial institution, the second token from a copy of the distributed ledger for the second financial institution; converting the second tokens into the second fiat currency; redeeming the second tokens to a second account of the second party for the second fiat amount; causing the one or more computer processors to execute steps including: changes to one of the copy of the distributed ledger for the first financial institution, the copy of the distributed ledger for the second financial institution, or the copy of the distributed ledger for the third financial institution are reflected in the other copies of the distributed ledger; A non-transitory computer-readable medium, wherein the first token and the second token are not interoperable and not directly interchangeable.

7. The non-transitory computer-readable medium of claim 6 , wherein the first account comprises a line of credit account.

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