Clearstream joins ECB trials to explore DLT for wholesale central bank money settlement
Clearstream joins ECB trials to explore DLT for wholesale central bank money settlement
- Clearstream is the only central securities depository to participate in wave 1 of the trials, with all three of its CSDs (German, Luxembourg and international CSD)
- Tests are conducted in the light of the development of a digital Euro
- Digital post-trade platform D7 enhanced with DLT capabilities for tokenised securities
Clearstream, Deutsche Börse Group’s post-trade business, joins the European Central Bank (ECB) trials and experiments, aimed at exploring the potential of distributed-ledger technology (DLT) for wholesale central bank money settlement, in the light of the development of a digital Euro.
Together with leading institutions, infrastructures and fintech businesses, Clearstream contributes to this transformative endeavour as DLT market operator with its leading digital post-trade platform D7 and all three central securities depositories (CSDs): its German CSD, LuxCSD in Luxembourg and the international CSD. Clearstream is the only CSD to participate in the first wave of the ECB trials.
By participating in the ECB trials, Clearstream aims to assess the feasibility of using DLT for wholesale transaction processing, using tokenised securities. This includes conducting euro-denominated issuances and delivery-versus-payment (DvP) transactions across different use-cases and payment models.
To optimally support the goal of the exploration, Clearstream has enhanced its digital post-trade platform D7 with respective DLT capabilities. This was done in collaboration with Google Cloud, leveraging the strategic partnership of Deutsche Börse Group and Google Cloud. Clearstream’s D7 has a proven track record with over 25,000 digital securities issuances, more than any other digital post-trade solution worldwide.
The ECB trials will be conducted in a productive environment, using real central bank money. The timeframe is set for May to November 2024.
Clearstream will connect to all three central bank digital offerings: Bundesbank’s Trigger Solution, Banca d’Italia’s TIPS Hash-link and Banque de France’s Full DLT Interoperability.
Editorial note: Please find here a high-resolution photo of Jens Hachmeister.
About Clearstream
Clearstream is the innovative and trusted post-trade business for the global markets. It runs the leading securities and funds servicing ecosystems of tomorrow.
The company operates the German and Luxembourg central securities depositories and an international central securities depository for the Eurobonds market. With 18 trillion Euros in assets under custody, it is one of the world’s largest settlement and custody firms for domestic and international securities.
It also delivers premier fund execution, distribution, data and reporting services, covering over 55 fund markets worldwide.
Clearstream is part of Deutsche Börse Group, an international exchange organisation and provider of innovative market infrastructures.
To learn more, visit us at www.clearstream.com or connect via LinkedIn.