The Eurosystem is currently running a series of trials exploring different mechanisms to settle DLT-based securities transactions using central bank money. In the latest trial, Germany’s Sparkasse Dortmund issued a digital savings bank bond on the SWIAT blockchain. The transaction was settled by using the German Bundesbank’s Trigger solution, which links to the TARGET2 payment system.
Helaba was the paying agent for the issuer, with DekaBank as the investor. DekaBank also acted as registrar for the registered bond and DLT operator. The bank is the founder of the SWIAT DLT platform, but it is now a joint venture that includes Standard Chartered and LBBW as partners. SWIAT says it has 24 institutional participants.
Sparkasse Dortmund joined the platform to issue digital savings bank bonds alongside two other savings banks last year. Since then SWIAT has attracted other savings banks, including Sparkasse Niederbayern-Mitte.
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