On Friday Intesa Sanpaolo issued €10 million in commercial paper using Clearstream’s D7 tokenization platform. The transaction which the bank was also the investor, used the Bank of Italy’s TIPS Hashlink solution for settlement, one of three payment options that are part of the European Central Bank’s (ECB’s) wholesale DLT settlement trials in central bank money.
In other words, rather than using cash on-chain, it used the Hashlink interoperability mechanism (a time of hashed time lock contract or HTLC) to settle the transaction using the TIPS payment system, Europe’s main instant payment solution.
The ECB’s trials have been running since May and finish at the end of this month. We believe this is only the second transaction to use the TIPS Hashlink option. The other involved the July €25 million digital bond issuance by Italy’s Cassa Depositi e Prestiti (CDP). Intesa Sanpaolo was the underwriter and sole investor.
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