ECB trials: France issues first DNN on Euroclear’s DLT platform
08 November 2024 France
Image: JeanLuc_Ichard/stock.adobe.com
France has issued the first digitally native note (DNN) in bearer form under its law, as part of the European Central Bank (ECB) trials.
The DNN of €100 million was issued by a public financial institution Caisse des Dépôts et Consignations (CDC) on 7 November, using Euroclear’s Digital Financial Market Infrastructure (D-FMI), and settled through Banque de France’s (BdF) DL3S platform for digital currency.
The French financial association Paris Europlace established a working group of banks and asset managers to participate in the EU initiative, which aims to explore the potential of distributed ledger technology (DLT) for settling wholesale transactions in central bank money.
BNP Paribas Securities Services acted as the issuing agent, with Crédit Agricole CIB and Natixis CIB serving as dealers.
BdF and Euroclear co-designed the interoperability solution, highlighting the importance of co-creation between private and public entities for successful adoption.
“It is crucial for participants, including financial market infrastructures and central banks, to collaborate in bridging the gap between traditional finance and digital asset securities,” says Sebastien Danloy, chief business officer at Euroclear.
Emmanuelle Assouan, director of general financial stability and operations at BdF, adds: “Choosing [our] full DLT interoperability solution for settling the cash leg of this issuance stresses the importance of tokenised central bank money for the development of the tokenisation of finance.
“The operation, performed under central securities depositories, allowed BdF to enrich its connectivity solutions by setting up a new interoperability link between the DLT, on the top of hashed timelock contract (HTLC) and SWIFT protocols.”
The DNN of €100 million was issued by a public financial institution Caisse des Dépôts et Consignations (CDC) on 7 November, using Euroclear’s Digital Financial Market Infrastructure (D-FMI), and settled through Banque de France’s (BdF) DL3S platform for digital currency.
The French financial association Paris Europlace established a working group of banks and asset managers to participate in the EU initiative, which aims to explore the potential of distributed ledger technology (DLT) for settling wholesale transactions in central bank money.
BNP Paribas Securities Services acted as the issuing agent, with Crédit Agricole CIB and Natixis CIB serving as dealers.
BdF and Euroclear co-designed the interoperability solution, highlighting the importance of co-creation between private and public entities for successful adoption.
“It is crucial for participants, including financial market infrastructures and central banks, to collaborate in bridging the gap between traditional finance and digital asset securities,” says Sebastien Danloy, chief business officer at Euroclear.
Emmanuelle Assouan, director of general financial stability and operations at BdF, adds: “Choosing [our] full DLT interoperability solution for settling the cash leg of this issuance stresses the importance of tokenised central bank money for the development of the tokenisation of finance.
“The operation, performed under central securities depositories, allowed BdF to enrich its connectivity solutions by setting up a new interoperability link between the DLT, on the top of hashed timelock contract (HTLC) and SWIFT protocols.”
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