The Boerse Stuttgart Group has shared its testing plans as part of the second wave of the ECB and Eurosystem’s wholesale DLT trials for central bank money settlement. The stock exchange group has developed a blockchain-based settlement solution. It plans to test the settlement of tokenized securities using central bank euros by linking with the Bundesbank’s trigger solution. While some of the ECB trials use real money, it will be simulated in this case.
Partners in the trial include Germany’s four largest banks, Deutsche Bank, Commerzbank, DZ Bank and LBBW. Bankhaus Metzler and V-Bank are also involved. The banks will act as trading and settlement partners and will directly connect to the blockchain network.
One of the key ECB objectives of the trials is to test the atomic settlement of securities, otherwise known as delivery versus payment. By eliminating counterparty risks, the tokenized securities are transferred directly to the banks. Hence, there’s no central securities depository involvement.
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