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Eurosystem Wholesale DLT Settlement Trials Conclude, ECB to Discuss Next Steps
Overview of Eurosystem Wholesale DLT Settlement Trials
Successful Conclusion of Trials
The recent completion of Eurosystem wholesale DLT settlement trials using central bank money marks a significant milestone in the blockchain technology space. The European Central Bank (ECB) has reported over 200 transactions with a total value exceeding €1.59 billion.
Participant Engagement and Lessons Learned
With 64 institutions participating in more than 40 trials and experiments, the ECB plans to have discussions in January to review the outcomes and consider potential next steps. Participants are eager to see the momentum continue and are hopeful for an extension of the trials.
Key Findings from the Trials
Issuance and Redemption of Bonds and Commercial Paper
The trials focused on activities such as the issuance and redemption of bonds, commercial paper, as well as intraday repurchase agreements (repos). Notably, the trials involved real money transactions, distinguishing them from simulated experiments.
Analysis of Transaction Data
Upon analysis, it was found that there were 21 issuances during the trials, including a €300 million bond issuance by Siemens. German institutions heavily participated, with the Bundesbank’s Trigger solution being the most used among the central bank settlement options.
Exploration of Use Cases
The simulations conducted during the trials explored a range of use cases, from interbank settlement for tokenized deposit payments to automated swaps settlement and margin call payments. The diverse scenarios tested demonstrate the potential for DLT technology in streamlining financial operations.
Future Implications and Next Steps
Continuing Dialogue with Participants
The ECB’s commitment to engaging with participants post-trials reflects a collaborative approach to integrating innovative solutions within the financial sector. Insights gained from the trials will inform potential future initiatives in the realm of DLT settlement.
Global Impact of CBDC Pilots
The extension of Switzerland’s wholesale CBDC pilot underscores the global interest in exploring the capabilities of digital currencies. The experiences from these trials pave the way for further advancements in central bank digital currencies worldwide.
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