Last week the European Central Bank (ECB) announced the first participants in its wholesale DLT trials using central bank money for settlement. One of the groups participating includes DekaBank and LBBW, which will use the SWIAT DLT platform founded by DekaBank. They aim to demonstrate delivery versus payment using the Bundesbank’s trigger payment solution.
The trigger solution is one of three payment options that the ECB offers as part of the trials. Another option is a wholesale central bank digital currency (wholesale CBDC) provided by the Banque de France. With the trigger solution, DLT platforms will integrate with the Trigger blockchain, which settles payments through a link with the Target2 payment system.
DekaBank founded SWIAT with LBBW and Standard Chartered’s SC Ventures also investing. It previously developed its Cycros trigger solution back in 2022. SWIAT notes that something like the trigger solution for digital securities settlement can eliminate counterparty risks because the asset and cash exchange simultaneously. One of SWIAT’s most recent initiatives involved tokenizing fund shares. A representative of SWIAT also sits on the ECB market contact group for new technologies.
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