RTGS

A funds transfer system where money or securities are settled individually (on a gross basis) and immediately (in real time) across central bank accounts, without netting or batching. This mechanism ensures that settlement is final and irrevocable the moment the transaction is processed, eliminating interbank settlement risk.

Operational Note

In digital-asset infrastructure, traditional RTGS systems (like Fedwire or TARGET2) are increasingly integrated with blockchain networks to facilitate "atomic settlement" - where the movement of tokenized assets occurs simultaneously with the fiat payment. While most RTGS systems operate only during banking hours, new 24/7 instant payment rails (such as FedNow) and interoperability layers (like the Regulated Liability Network) are being built to allow stablecoin issuers and institutions to rebalance liquidity on-chain at any time, mirroring the "always-on" nature of crypto markets.

Scope Boundary

RTGS describes the settlement capability of the underlying fiat rail, distinct from the net settlement models used by card networks or ACH, and distinct from the consensus-based settlement of public blockchains (though the two can be bridged).