A new document suggests that private sector entities could issue a digital version of the Special Drawing Right (SDR) using blockchain technology. This proposal, outlined by crypto researcher SMQKE, envisions issuing an SDR-based cryptocurrency on a Layer 1 blockchain like the XRP Ledger. The document details how this digital asset would combine IMF backing and the existing fiat model with the transparency and efficiency of distributed ledger technologies. It proposes modernizing the SDR framework to align with blockchain ecosystems while maintaining its stability. Unlike traditional SDRs, which are allocated to member states, this proposed “crypto SDR” could be privately issued and freely circulated, creating a bridge between traditional finance and digital assets. The document outlines two potential implementation models: **developing a new blockchain for the SDR token or issuing it on an existing blockchain like the XRP Ledger.** Both models would require strong compliance mechanisms and stable collateralization to preserve the SDR’s low-volatility function as a reserve asset. The report highlights the benefits of using blockchain technology to streamline international settlements, pegging its value to the existing SDR basket. This could provide a stable valuation mechanism while removing reliance on intermediaries. The system would allow for faster deployment, real-time settlement, and enhanced data transparency across jurisdictions. The document explores how this framework could facilitate cross-border payments by allowing direct transfers between currencies without relying on traditional correspondent banking layers. The proposed solution suggests the potential of the XRP Ledger as a foundation for programmable payment solutions with its high throughput, low transaction cost, and compliance adaptability. The report emphasizes that private sector issuance of an SDR-pegged digital asset could represent a significant step towards a unified blockchain-based reserve instrument, aligning with efforts to enhance transparency and efficiency in global payments. This research is being shared by SMQKE on X, where you can find more information [link to the tweet]. **Important Note:** This article provides information for understanding but does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.