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FEDERAL RESERVE BANK OF REDMONT | RECORDS
Prepared By: DonTrillions & Stoppers
Classification: Public Release
Date: 8th April 2025
Code Name: FRB T-Bill Program V-001
Document Notice: This policy has been prepared by the Federal Reserve Bank of Redmont and is published for public transparency and institutional guidance.
Affected Parties: Financial Institutions, FRB Operations
Minting Required: N
Estimated Cost: N/A
In alignment with the ongoing development of Redmont’s maturing financial system, the Federal Reserve Bank proposes the introduction of short-term Treasury Bills ("FRB T-Bills") to enhance liquidity management, settlement flexibility, and reserve optimization among institutional banking participants.
The FRB T-Bills are to be issued at a discount, with short-term maturities ranging from 1 to 4 weeks. These instruments are to serve as fully redeemable, interest-yielding, near-cash equivalents, allowing institutions to fulfill high-value obligations without drawing down immediate in-game cash positions.
This policy proactively modernizes the liquidity tools available within Redmont’s banking infrastructure. The proposed program introduces optionality, efficiency, and security to the interbank settlement environment, minimizing the need for disruptive interventions or reactive measures.
Instrument Format: Zero-coupon, issued at a discount to face value
Maturity Options: 7 to 28 days (1 to 4 weeks)
Yield Basis: Weekly equivalent of the prevailing FRB discount rate
Redemption: Full face value redemption on maturity (auto-settled)
Transferability: Freely tradable between institutions, registered by the FRB
Minimum Denomination: $1,000,000
Issuance Cadence: Weekly auction cycle
Settlement Timing: T+0 or T+1 via official FRB dashboard or ledger.
"T" refers to the transaction date. "T+0" means the transaction and its settlement occur on the same day, while "T+1" indicates settlement one business day after the transaction date.
A follow-up FRB motion will be required and must pass to officially initiate the rollout. This ensures that the final motion is conducted in public view, establishing transparency and accountability before full-scale deployment.
The project will then launch with a controlled pilot issuance, featuring a capped volume to test and refine the process before a full-scale rollout.
This cadence balances operational flexibility with the need for periodic oversight, inspired by real-world review mechanisms such as those employed in Australia.
FOOTNOTE: This policy is subject to change based on board feedback or further regulatory updates. For official updates, please refer to the FRB Redmont public channels.
[END LOG]
Prepared By: DonTrillions & Stoppers
Classification: Public Release
Date: 8th April 2025
Code Name: FRB T-Bill Program V-001
Document Notice: This policy has been prepared by the Federal Reserve Bank of Redmont and is published for public transparency and institutional guidance.
[BEGIN LOG]
[FRB T-Bill Program | V-001]
Category: Fiscal PolicyAffected Parties: Financial Institutions, FRB Operations
Minting Required: N
Estimated Cost: N/A
In alignment with the ongoing development of Redmont’s maturing financial system, the Federal Reserve Bank proposes the introduction of short-term Treasury Bills ("FRB T-Bills") to enhance liquidity management, settlement flexibility, and reserve optimization among institutional banking participants.
The FRB T-Bills are to be issued at a discount, with short-term maturities ranging from 1 to 4 weeks. These instruments are to serve as fully redeemable, interest-yielding, near-cash equivalents, allowing institutions to fulfill high-value obligations without drawing down immediate in-game cash positions.
This policy proactively modernizes the liquidity tools available within Redmont’s banking infrastructure. The proposed program introduces optionality, efficiency, and security to the interbank settlement environment, minimizing the need for disruptive interventions or reactive measures.
KEY POLICY ELEMENTS:
Issuer: Federal Reserve Bank of RedmontInstrument Format: Zero-coupon, issued at a discount to face value
Maturity Options: 7 to 28 days (1 to 4 weeks)
Yield Basis: Weekly equivalent of the prevailing FRB discount rate
Redemption: Full face value redemption on maturity (auto-settled)
Transferability: Freely tradable between institutions, registered by the FRB
ELIGIBILITY & SETTLEMENT:
Eligible Parties: All Financial Institutions (FIs) registered with the Department of Commerce (DOC)Minimum Denomination: $1,000,000
Issuance Cadence: Weekly auction cycle
Settlement Timing: T+0 or T+1 via official FRB dashboard or ledger.
"T" refers to the transaction date. "T+0" means the transaction and its settlement occur on the same day, while "T+1" indicates settlement one business day after the transaction date.
INSTITUTIONAL RECOMMENDATIONS:
- Establish internal policies allowing the use of FRB T-Bills to fulfill client withdrawals exceeding $5 million
- Utilize T-Bills as preferred instruments for interbank settlement in lieu of in-game cash
- Maintain a portion of reserve assets in T-Bills to enhance flexibility and yield
- Convert balances held at third-party custodians into T-Bills when rapid liquidity access is uncertain
SYSTEMIC BENEFITS:
- Enhances interbank liquidity efficiency
- Prevents unnecessary depletion of physical cash reserves
- Provides a stable, FRB-backed, tradable instrument
- Reinforces market confidence in Redmont’s banking infrastructure
- Bridges the gap between ledger-based balances and real-time liquidity needs
REDUNDANCY AND SAFEGUARDS:
- All T-Bills are fully backed and guaranteed by the FRB
- Redemption risk is considered null; default scenarios require congressional override
IMPLEMENTATION ROADMAP:
The implementation roadmap begins with full board authorization and an approval vote of this policy in order to move forward with the initiative. Following this, the development of the auction and tracking systems will take place. Once these systems are established, the official ruleset and communications strategy will be published to the general public to provide clarity and transparency.A follow-up FRB motion will be required and must pass to officially initiate the rollout. This ensures that the final motion is conducted in public view, establishing transparency and accountability before full-scale deployment.
The project will then launch with a controlled pilot issuance, featuring a capped volume to test and refine the process before a full-scale rollout.
POLICY OVERSIGHT & REVIEWS:
The FRB shall conduct a monthly review of the discount rate used in T-Bill yield calculations to maintain alignment with broader macroeconomic factors and ensure responsive monetary conditions.This cadence balances operational flexibility with the need for periodic oversight, inspired by real-world review mechanisms such as those employed in Australia.
FOOTNOTE: This policy is subject to change based on board feedback or further regulatory updates. For official updates, please refer to the FRB Redmont public channels.
[END LOG]