Clearstream Partners with ECB for Wholesale CBDC Trials Featuring Tokenized Securities

Central securities depository, Clearstream, affiliated with Deutsche Börse Group, is set to participate in the European Central Bank’s (ECB) pilot tests for a digital euro, specifically focusing 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 expanding our D7 digital securities infrastructure with DLT [distributed ledger technology] components and fostering connections with the main digital payment solutions across the Eurosystem.”

This initiative aims to explore the application of distributed ledger technology (DLT) components for tokenized securities in wholesale transactions. The exploration, which will utilize real central bank funds, is scheduled to run from May through November of this year.

Clearstream’s stride in the digital ecosystem

Clearstream collaborated with Google Cloud to enhance the capabilities of D7 by experimenting with blockchain technology for the handling of wholesale transactions involving tokenized securities. This initiative includes integration with three key European central bank systems: the Trigger Solution by Deutsche Bundesbank, TIPS Hash-link by Banca d’Italia, and Full DLT Interoperability by Banque de France. Both Banca d’Italia and Deutsche Bundesbank have been exploring similar blockchain solutions since 2021. 

By the end of 2023, Banca d’Italia had entered into an agreement with the Bank of Korea to jointly research settlement systems and central bank digital currencies (CBDC). With more than 18 trillion euros in assets under its management, Clearstream also engaged in SWIFT’s trials on CBDC and tokenized assets during 2022. The decision to introduce a digital euro will await the completion of the European Central Bank’s (ECB) trials and the enactment of relevant legislation.

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