L-Bank, the development bank owned by the German State of Baden-Württemberg, has issued its first digital commercial paper. The issuance used Clearstream’s D7 platform with the payment settled as part of the European Central Bank wholesale DLT trials which aim to provide payment options for the settlement of DLT-based transactions. Three payment options are available with the trials, with this transaction using the Bundesbank’s trigger solution, which initiates a payment in central bank money using the Target2 payment system.
Natwest Markets BV was the lead manager and investor in the commercial paper, which has a term of one month.
“The ECB trials continue to generate valuable practical learnings for issuers and investors, as central banks continue to explore options to maintain central bank money as the safest settlement as for tokenised wholesale transactions,” said Nick Pederson, Head of Digital, Natwest Markets.
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