HSBC and IBM complete successful token and digital wallet settlement test
17 December 2021 France
Image: ipopba
HSBC and IBM have successfully tested an advanced token and digital wallet settlement that included direct transactions between two central bank digital currencies (CBDC), using the cloud.
The experiment, which was designed and implemented within a four-month period, was executed across distributed ledgers based on IBM’s Hyperledger Fabric and R3’s Corda. The ledgers were integrated using IBM Research’s Weaver interoperability tool.
The experiment successfully tested an end-to-end transaction lifecycle covering CBDCs, eBonds, and foreign exchange.
The eBonds involved delivery versus payment (DVP) across primary issuance and secondary trading and coupon payments, while the foreign exchange element included pricing and payment versus payment (PVP) settlement.
The experiment was carried out on public and private clouds and on premise data sources.
The project was initiated by Banque de France as part of a programme to explore the potential of the digital Euro.
Mark Williamson, managing director GFX eRisk, partnerships and propositions at HSBC, says: “We were pleased to be selected by Banque de France to conduct this exciting experiment. Interoperability across different distributed ledger technologies was key in demonstrating how to save time, reduce market risk and improve security for transactions between central banks, commercial banks and in time our clients around the world.”
Likhit Wagle, general manager global banking and financial markets at IBM, comments: "As central banks around the world begin to explore the potential for CBDC to bring greater transparency and security to financial transactions, this initiative provides a comprehensive roadmap."
The experiment, which was designed and implemented within a four-month period, was executed across distributed ledgers based on IBM’s Hyperledger Fabric and R3’s Corda. The ledgers were integrated using IBM Research’s Weaver interoperability tool.
The experiment successfully tested an end-to-end transaction lifecycle covering CBDCs, eBonds, and foreign exchange.
The eBonds involved delivery versus payment (DVP) across primary issuance and secondary trading and coupon payments, while the foreign exchange element included pricing and payment versus payment (PVP) settlement.
The experiment was carried out on public and private clouds and on premise data sources.
The project was initiated by Banque de France as part of a programme to explore the potential of the digital Euro.
Mark Williamson, managing director GFX eRisk, partnerships and propositions at HSBC, says: “We were pleased to be selected by Banque de France to conduct this exciting experiment. Interoperability across different distributed ledger technologies was key in demonstrating how to save time, reduce market risk and improve security for transactions between central banks, commercial banks and in time our clients around the world.”
Likhit Wagle, general manager global banking and financial markets at IBM, comments: "As central banks around the world begin to explore the potential for CBDC to bring greater transparency and security to financial transactions, this initiative provides a comprehensive roadmap."
← Previous clearing and settlement article
Keler and IRGiT to combine for regional clearing collaboration
Keler and IRGiT to combine for regional clearing collaboration
Next clearing and settlement article →
EBA Clearing successfully completes migration of RT1 technical account to TIPS
EBA Clearing successfully completes migration of RT1 technical account to TIPS
NO FEE, NO RISK
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
