The Eurosystem is gearing up for wholesale settlement trials for DLT networks using central bank money. It opened the call for applications in December, with tests to start in earnest in May. Last month it held its sixth meeting of the industry contact group. As with most previous sessions, various companies outlined potential use cases. One of them was Onyx by JP Morgan.
This sixth contact group meeting will be the last until June, which will be an in-person meeting, presumably to get feedback about the trials.
When the DLT initiative first launched, the emphasis was on securities settlement. As tokenized deposits and deposit tokens have moved up the agenda, there are likely to be multiple use cases where central bank money (CeBM) will be used to settle interbank payments. In the most recent contract group meeting, two groups proposed this use case – the ABI Lab which is part of the Italian Banking Association and Onyx by JP Morgan.
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