Today the Banque de France announced the completion of another wholesale central bank digital currency (CBDC) experiment. This time it was for securities settlement with a consortium created by blockchain securities startup Liquidshare.
The latest digital euro tests simulated the issuance and settlement of unlisted digital securities on a private ledger and the settlement of listed securities. The payment involved a central bank digital currency. Most of the central bank’s trials to date have focused on settling securities transactions.
A key driver of financial institution need for a CBDC is for on-chain payments either for blockchain-based post-trade systems or end-to-end security token platforms.
The participants in the Liquidshare consortium were Axa Investment Managers, BNP Paribas Securities Services, CACEIS Bank, CIC Market Solutions, Crédit Agricole Titres, Euroclear, Euronext, Kriptown, La Banque Postale, Caisse des Dépôts, ODDO BHF, ODDO BHF AM and OFI AM.
In July last year, the Banque de France announced it would work with eight organizations which each created its own consortium. The eight are Accenture, Euroclear, HSBC, fund management platform Iznes, Liquidshare, ProsperUS, SEBA Bank and Société Générale (SocGen) Forge
The highest profile CBDC pilot was the €100 million bond issuance by the European Investment Bank on the Ethereum blockchain, which was settled by a CBDC from the Banque de France. This was a real transaction. That was one of several tests the Bank has conducted with SocGen Forge.
During the last month, there have been trials from SEBA Bank and Accenture and their consortia as the central bank prepares to publish its progress report.