Banks DekaBank and DZ Bank utilize Clearstream's D7 platform for commercial paper issuance, in the ongoing trials of the Digital Ledger Technology (DLT) by the European Central Bank.
Clearstream, a post-trade subsidiary of Deutsche Boerse, has made history by issuing transactions for commercial paper on the decentralized D7 DLT. This groundbreaking move was announced in 2021 when Deutsche Boerse unveiled D7, its digital securities platform.
The transactions, which were part of the Eurosystem wholesale DLT trials, involved two €5 million papers each issued by DekaBank and DZ Bank. The banks acted as investors in each other's bonds, marking a significant step towards the digitalisation of the financial industry.
Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, commented on the new D7 DLT, stating that it provides seamless processing of digital assets and high-quality cash on-chain. He further added that the platform offers a promising solution for the future of digital securities.
The settlement for these transactions was done using central bank money, and the Bundesbank Trigger solution was employed for settling the transactions. This use of central bank money underscores the legitimacy and reliability of the D7 DLT platform.
Clearstream has a proven track record in hosting the issuance of several billion euros of securities, and this latest development is a testament to their commitment to innovation and digital transformation in the financial sector.
Professional subscribers can access more detailed information and analysis about these transactions and the future of digital securities on Clearstream's platform. The new D7 DLT offers high-quality cash on-chain processing, paving the way for a more efficient and secure digital financial system.
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