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The European Central Bank (ECB) is spearheading a collaborative effort to explore the potential of distributed ledger technology (DLT) in settling wholesale transactions using central bank money.
The initial phase of trials will involve the participation of 10 market players, six DLT operators, and five central banks. These trials will encompass real-world settlement transactions in central bank money, as well as simulated settlement exercises conducted in a controlled test environment.
The focus of these trials revolves around various aspects of the securities settlement cycle, including delivery-versus-payment, secondary market transactions, and the lifecycle management of securities. Additionally, the trials will delve into potential use cases related to cross-border payments, such as payment-versus-payment scenarios.
Among the participating entities is Clearstream, the post-trade business arm of Deutsche Börse, leveraging its digital post-trade platform, D7, which has been enhanced with DLT capabilities.
Jens Hachmeister, Head of Issuer Services and New Digital Markets at Clearstream, expressed the significance of Clearstream’s involvement in the ECB trials, describing it as a pivotal milestone in their journey towards digitization. He emphasized the expansion of Clearstream’s D7 digital securities infrastructure with DLT components and the establishment of connections with key digital payment solutions across the Eurosystem.
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