ECB and Clearstream launch joint effort to explore tokenized securities in CBDC trials

Deutsche Börse Group’s affiliated central securities depository, Clearstream, is scheduled to take part in the European Central Bank’s (ECB) pilot tests for a digital euro, with an emphasis on the wholesale central bank digital currency (CBDC) segment.

About Clearstream

Clearstream, the operator of the D7 post-trade infrastructure, stands out as the sole central securities depository (CSD) involved in the initial stage of the ECB’s “preparatory” experiments. Besides running a German CSD, it also manages LuxCSD in Luxembourg and an international CSD.

Jens Hachmeister, the head of issuer services and new digital markets at Clearstream, commented: “We are growing our D7 digital securities infrastructure with DLT components and developing links to the major digital payment solutions in the Eurosystem.”

This project is focused on the use of DLT components for tokenized securities in wholesale transactions. The research to be financed by the real central bank funds is expected to start in May and run through November this year.

Clearstream’s stride in the digital ecosystem

Clearstream partnered with Google Cloud for the improvement of D7 by experimenting with blockchain technology that is aimed at dealing with wholesale transactions involving tokenized securities. This initiative includes integration with three key European central bank systems: the Trigger Solution of Deutsche Bundesbank, TIPS Hash-link of Banca d’Italia and Full DLT Interoperability of Banque de France. Banca d’Italia and Deutsche Bundesbank have been looking at the same blockchain solutions since 2021.

In 2023, Banca d’Italia concluded a contract with the Bank of Korea for the purpose of a joint research into settlement systems and central bank digital currencies (CBDC). Clearstream, with over 18 trillion euros in assets under its management, also participated in SWIFT’s tests on CBDC and tokenized assets in 2022. An obligation to launch a digital euro will be put off until the European Central Bank (ECB) completes the trials and necessary laws are enacted.

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