Clearstream, an associated central securities depository of Deutsche Börse Group, is set to participate in the European Central Bank's (ECB) trial runs for a digital euro, focusing on the wholesale central bank digital currency (CBDC) sector.

About Clearstream

Distinguished as the exclusive central securities depository (CSD) within the initial phase of the ECB's preliminary experiments, Clearstream operates the D7 post-trade infrastructure. Apart from overseeing a German CSD, it also administers LuxCSD in Luxembourg and an international CSD.

Jens Hachmeister, overseeing issuer services and new digital markets at Clearstream, expressed, "We are expanding our D7 digital securities infrastructure with DLT elements and establishing connections to major digital payment solutions in the Eurosystem."

This endeavor concentrates on utilizing DLT elements for tokenized securities in wholesale transactions. The research, funded by authentic central bank resources, is slated to commence in May and extend until November this year.

Clearstream's Progress in the Digital Landscape

Collaborating with Google Cloud to enhance D7 through blockchain technology for managing wholesale transactions involving tokenized securities, Clearstream has integrated with three pivotal European central bank systems: Deutsche Bundesbank's Trigger Solution, Banca d'Italia's TIPS Hash-link, and Banque de France's Full DLT Interoperability. Banca d'Italia and Deutsche Bundesbank have been exploring similar blockchain solutions since 2021.

In 2023, Banca d'Italia finalized an agreement with the Bank of Korea for joint research on settlement systems and central bank digital currencies (CBDC). With assets exceeding 18 trillion euros under its supervision, Clearstream also engaged in SWIFT's trials on CBDC and tokenized assets in 2022. The launch of a digital euro will be postponed until the ECB concludes the trials and requisite legislation is enacted.