"We look forward to seeing the impact this project will have on shaping the future of property transactions."
The Bank of England, HM Land Registry, Bank of International Settlements and Coadjute have collaborated to launch Project Meridian, a digital synchronised settlement prototype promising to reshape the way property payments are conducted.
The new prototype replaces the numerous manual steps in the property purchase process and avoids the exchanging of paper-based documents entirely, cutting the risk of fraud or transactions being delayed at the eleventh hour.
The settlement prototype works by digitising the workflow between commercial banks, the Bank of England and the Land Registry. Conveyancers connect to the service and send instructions which reserve funds.
Then, at a pre-set date and time, the funds for that property transaction, or even for a whole chain of transactions, are moved in synchronisation. Immediately the funds are moved, digital deeds are issued, and instructions sent to HM Land Registry to update the register.
John Reynolds, project director and COO at Coadjute, said: “Settlement is particularly complex and can only be tackled through deep collaboration and partnership with the public sector. What the Bank for International Settlements (BIS) Innovation Hub London Centre has done fantastically well here is create an open, innovative and collaborative environment for the public and private sector to work together to do just that.”
Dan Salmons, CEO at Coadjute, added: “I've spent most of my working life leading payments innovations in banks and fintechs - I was there in the early days of contactless cards and mobile payments - so know first-hand what it looks like at the start of a genuine change to the way we all move money.
“Few payments are more important than those for property, and the work the Bank of England, HM Land Registry, Bank of International Settlements and Coadjute have done to reimagine the settlement process is extraordinary. We look forward to seeing the impact this project will have on shaping the future of property transactions.”