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The European Central Bank (ECB) has confirmed that Eurex Clearing will join the second wave of the ECB trials, alongside other market participants such as Clearstream.
Three central banks and 48 private firms from the financial sector will take part in wave two of the Eurosystem’s exploratory work, joining the first group of participants who have already been testing since May.
These trials aim to explore the potential of distributed ledger technology (DLT) for wholesale central bank digital money settlement.
In the first wave, Eurex Clearing engaged in testing the Trigger Solution developed by Deutsche Bundesbank.
In the second phase, Eurex Clearing will be involved in trials that settle cash amounts via the ledger of the Banque de France’s Full DLT Interoperability Solution.
The wave two trials encompass two use cases: cleared repo transactions, similar to wave one, and intraday margin calls.
According to Eurex Clearing, the exploratory work is expected to lay the basis for future industry standards, particularly for interoperability between DLT platforms and traditional finance.
Matthias Graulich, member of the executive board at Eurex Clearing, says: “[We] recognise the great potential of new technologies such as DLT. They can undoubtedly contribute to greater cost efficiency and process optimisation in clearing and settlement.”
The ECB trials are taking place from May to November 2024 in a productive environment, using real central bank money.
