It’s been more than 18 months since the European Investment Bank (EIB) issued its €100 million digital bond on the permissioned Goldman Sachs DLT infrastructure, GS DAP. Hence, it seems pretty late to publish a report on Project Venus. On the other hand, it’s timely because Project Venus used the Banque de France’s DL3S network for a wholesale central bank digital currency (CBDC) for settlement. The same solution is currently being used in the European Central Bank wholesale DLT settlement trials. Earlier this week, the ECB released a list of 48 private firms participating in the second wave.
Project Venus involved delivery versus payment between two different DLT networks, the GS DAP and DL3S, which use different technologies. The settlement was instantaneous and atomic compared to the average two to five-day settlement for issuances. Even if instant settlement is not always desirable, with DLT it can be performed at a pre-defined time allowing for liquidity planning. Plus, atomic settlement eliminates counterparty risk.
GS DAP is based on Digital Asset’s Canton and is underpinned by Hyperledger Besu. DL3S uses Hyperledger Fabric. Hashed time lock contracts (HTLC) were used to synchronize the two ledgers to enable atomic settlement across the two networks.
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