The DTCC, the world’s largest securities settlement organization, announced plans to test a tokenized central bank digital currency (CBDC) prototype for settling stocks using blockchain. Rather than working with the Federal Reserve, the project is a collaboration with the Digital Dollar Project, a private non-profit co-founded by Accenture and J. Christopher Giancarlo, former chairman of the U.S. Commodity Futures Trading Commission (CFTC).
Accenture had previously agreed to fund five Digital Dollar Project initiatives, and this is the first of several pilots to be announced.
As with other wholesale CBDC trials, the tests will explore enabling atomic settlement where the stock and cash are simultaneously exchanged between two participants, reducing counterparty risks. The post-trade project will use a DLT clearing and settlement infrastructure to enable delivery versus payment.
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