DTCC Targets Full Launch of Tokenization Service by October (Blockstories)
DTCC will begin live production trades for its tokenization service in July 2026 with a 50‑plus firm working group, targeting full launch by October. Using the ComposerX platform, DTCC will issue onchain “tokenized entitlements” that mirror economic rights in securities held in traditional custody, extending its central securities depository role rather than tokenizing the underlying instruments. Tokens, initially on Canton Network, will be multi‑chain via a mint‑and‑burn model, with no bridges and a single CUSIP-based record to preserve netting and liquidity. DTCC is deliberately avoiding full atomic settlement, arguing current 98% netting efficiency makes immediate migration uneconomic, and is also preparing a Collateral AppChain for 24/7 tokenized collateral management by Q4 2026. [Blockstories]
27th Meeting of the Digital Euro Scheme Rulebook Development Group (ECB)
The European Central Bank (ECB) posted the outcome of the 27th Digital Euro Scheme Rulebook Development Group meeting (27 January 2026). It was agreed to launch two new workstreams on terminal/ATM providers and on the certification and approval framework, reviewed the ECB’s proposed offline digital euro solution, and discussed risk management including use of a digital euro fraud risk score and alignment with the Payment Services Regulation. The group noted progress on cooperation with standardisation bodies (Nexo, ECPC, Berlin Group, EPC), handling of comments on rulebook v0.9, preparation of a limited digital euro pilot with selected payment service providers and merchants, and forthcoming batches of minimum user experience requirements and implementation specifications. [ECB]
28th Meeting of the Digital Euro Scheme Rulebook Development Group (ECB)
The ECB also posted the outcome of the 28th Digital Euro Rulebook Development Group meeting (10 March 2026) reviewed work on ecosystem fit, the digital euro app, user journeys and minimum user-experience requirements, and additional clarifications on offline functionality, including thresholds, recovery and terminal readiness. It discussed risk management (including financial crime, privacy, reputational and multi-account risks), reuse of PCI and other security standards, and updates to front- and back-end implementation specifications, including alignment with ISO 20022 and Berlin Group structures and separation of authorisation and settlement. The group launched a new terminal/ATM workstream (G5), considered rulebook v0.9 consultation updates, and addressed scheme-wide timeouts and potential deep-dive sessions. [ECB]
And in case you missed these earlier stories buried under my earlier-in-the-week blog post on remunerated stablecoins…
Digital Shekel Project: Progress Report 2025 (Bank of Israel)
The Bank of Israel published an update on its digital shekel project that is progressing toward an end‑2026 issuance decision, concluding that expected macroeconomic benefits are likely to exceed the associated costs. The analysis found that disintermediation risk is low under appropriately calibrated holding limits, with policy rate cuts and liquidity injections (via short‑term Bank of Israel bill redemptions) sufficient to offset deposit outflows except under extreme scenarios. A decentralized supervisory model is proposed, with existing financial regulators overseeing their respective digital shekel participants under a uniform Bank of Israel rulebook. A unified multipurpose infrastructure for retail and wholesale use is found technologically feasible and preferable to separate systems. Open questions include whether the digital shekel should be remunerated, offline payment double‑spend prevention, and retail‑versus‑wholesale sequencing. In addition, a quantitative survey of small businesses found that only one‑fifth expressed interest in using digital shekels, citing satisfaction with existing digital payment methods, although they indicated general interest in a digital shekel if it were to offer lower fees than current digital payment methods. A qualitative survey of large corporations also found lukewarm interest in using a digital shekel, with respondents mainly viewing it as potentially relevant for internal settlement and treasury operations rather than for customer‑facing retail payments, and stressing the importance of compatibility with existing systems. [Bank of Israel]
BOE DLT Innovation Challenge 2025: Final Report (BOE)
The Bank of England (BOE) published the Distributed Ledger Technology (DLT) Innovation Challenge Report that captures key insights from its collaboration with the Bank for International Settlements (BIS) Innovation Hub London Centre. During September–October 2025 nine firms explored whether wholesale central bank money can be transacted and settled on an external programmable ledger not controlled by the central bank. Across four themes—settlement finality, scalability, network and asset control, and interoperability—the exercise found that consensus mechanism design is key to achieving irreversibility; that vertical on-chain scaling preserves Layer 1 settlement integrity but constrains throughput, while pure off-chain approaches improve scalability at the cost of cross-ledger trust assumptions; and that synchronization tools offer a practical interoperability pathway connecting external DLT platforms to existing real-term gross settlement (RTGS) infrastructure. For institutional design, the principal output is the Bank’s Synchronization Lab, enabling RT2 to settle conditionally on external ledger asset movements. Further targeted DLT experiments are planned for 2026. [BOE]
I am honored to have been given the opportunity to contribute a chapter to the soon-to-be released book, Tokenisation of Money: From Fiat Currencies to Stablecoins, published by Springer! Expertly edited by Prof. Selim Yazıcı, Prof. C. Coşkun Küçüközmen, and Dr. Michael Salmony, it serves as a critical handbook for navigating the profound transformation of the global financial services industry. At a time when there is substantial confusion regarding new digital instruments, this book distinguishes reality from hype across the dimensions of CBDCs, stablecoins, and tokenized deposits. In my contribution, I provide an overview and reality check on global retail central bank digital currency (CBDC) developments. The book will be available via digital platforms by the end of May and you can pre-order the hard cover version here: https://link.springer.com/book/9783032229458!
FYI I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.
