Systems and methods for facilitating transactions using a digital currency

A system for facilitating a transaction between a first entity and a second entity using a digital currency, comprising:

• a computing node, wherein the computing node is connected to one or more computing nodes participating in a private distributed ledger for a first financial institution, wherein the private distributed ledger stores one or more transaction blocks representing transactions in a digital currency that is fixed with respect to a fiat currency, the computing node configured to:
• store and maintain a copy of the private distributed ledger;
• receive a transaction for transferring an amount of digital currency from a first entity to a second entity, wherein the first entity relates to the first financial institution and the second entity relates to a second financial institution;
• generate a new transaction block representing the transaction for addition to the private distributed ledger;
• transmit the new transaction block to the one or more computing nodes participating in the private distributed ledger;
• receive, from the one or more computing nodes, an indication of validity of the new transaction block;
• and
• based on the indication of validity:
• insert the new transaction block into the private distributed ledger to complete withdrawal of the amount of digital currency;
• and
• exchange the amount of digital currency into an equivalent amount of fiat currency for transferring to the second entity relating to the second financial institution.

A method for exchanging a first digital currency that is fixed with respect to a first fiat currency into a second digital currency that is fixed with respect to a second fiat currency, comprising:

• receiving, from a user, at a financial institution, a request to exchange an amount of a first digital currency that is fixed with respect to a first fiat currency into an equivalent amount of a second digital currency that is fixed with respect to a second fiat currency;
• storing the received request for currency exchange in a private distributed ledger for the financial institution;
• and
• transferring out the amount of the first digital currency from a digital wallet for the user and transferring in the equivalent amount of the second digital currency to the digital wallet for the user.

A clearing house for facilitating digital currency transactions, the clearing house comprising:

• a computing node, wherein the computing node is connected to one or more computing nodes participating in a private distributed ledger for the clearing house, wherein the private distributed ledger stores one or more transaction blocks representing transactions in one or more digital currencies, the computing node configured to:
• store and maintain a copy of the private distributed ledger;
• receive a transaction for transferring an amount of digital currency from a first digital wallet to a second digital wallet,
• wherein the digital currency is issued by a first financial institution and is fixed with respect to a fiat currency,
• wherein the first digital wallet belongs to a user of the first financial institution and the second digital wallet belongs to a user of a second financial institution, and
• wherein information regarding the transaction is sent to or received from, the first digital wallet at the first financial institution and/or the second digital wallet at the second financial institution, to be recorded on a private distributed ledger for the first financial institution and/or a private distributed ledger for the second financial institution;
• store a new transaction block representing the transaction in the private distributed ledger for the clearing house;
• and
• update the first digital wallet and the second digital wallet, thereby transferring the amount of digital currency from the first digital wallet to the second digital wallet.