Boerse Stuttgart tests tokenized security settlement in ECB wholesale DLT trials (Ledger Insights)

As part of the European Central Bank’s (ECB) explorations, Boerse Stuttgart and six German banks tested the settlement of exchange transactions with blockchain-based securities against central bank money for the first time. The settlement solution was linked to the Deutsche Bundesbank (BuBa) trigger solution (see below) and thus to the traditional euro payment system. The tests showed that the settlement processes can be mapped automatically, step by step and directly between the trading participants – efficiently, securely and without counterparty risk. The settlement time was reduced from two days to just a few minutes. [Read more at Bourse Stuttgart]

The BuBa trigger solution links DLT platforms operated by the market with the traditional Eurosystem payment system (TARGET), thus enabling the direct settlement of DLT-based wholesale transactions on participants’ existing RTGS accounts in central bank money. [The BuBa maintains a continuously updated list of such exploration’s here].

Digital Asset completes a successful pilot to tokenize Gilts, Eurobonds and gold (Canton)

Digital Asset completed a pilot to tokenize U.K. Gilts, Eurobonds and gold on the distributed ledger technology (DLT) based Canton Network, which provided interoperability between separate DLT networks that have deployed Digital Asset’s technology. The aim was to demonstrate how tokenized assets on a blockchain can enhance collateral mobility, improve liquidity, and increase transactional efficiency. The pilot involved Euroclear, the World Gold Council and 27 market participants. Five types of cross-application transactions were connected using eleven distributed applications, including six registry apps and five margin apps, with 500 transactions completed. [Read more at Canton]

Global crypto regulation landscape: 2024 review (Elliptic)

Elliptic published the 2024 edition of its global crypto regulation landscape review, highlighting key trends and regional developments that are shaping the future of regulatory compliance. Significant developments have emerged across three key areas: the EU’s Markets in Crypto-assets (MiCA) regulation, the expansion of the “travel rule” to crypto transactions, and stablecoin regulation. Authorities are now emphasizing consumer protection, financial stability, and preventing illicit activities, aided by the entry of mature institutional players, contributing to a structured and transparent market. [Download the report at Elliptic]

Upcoming Speaking Engagements:

• Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]

And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.