Eurex Clearing integrated the Banque de France’s wholesale central bank digital currency (wCBDC) as part of the Eurosystem’s trials for wholesale DLT settlement using central bank money. Tokenized commercial paper issued by ABN AMRO a couple of weeks ago, was traded on the Eurex Repo F7 platform with settlement using the wCBDC. Additionally, the wCBDC was used for margin calls.
Stepping back, as institutions start to issue digital securities on DLT, they need accept payment for securities, ideally through a DLT integration to reap the full efficiencies. Hence, the European Central Bank (ECB) is coordinating a series of trials to ensure digital securities continue to be settled with central bank money. There are three settlement options, with the German and Italian central banks providing links with the European TARGET and TIPS payment systems. The Banque de France opted for a ‘full DLT interoperability’ solution, which uses a wholesale CBDC.
For the Eurex test, three other central banks participated: the German Bundesbank, Dutch De Nederlandsche Bank and Banque Centrale de Luxembourg. ABN Amro Bank, ABN Amro Clearing Bank, Rabobank, Clearstream, and Eurex Repo were also involved.
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