ECB expands initiative to settle DLT-based transactions in central bank money
21 February 2025 Europe
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The European Central Bank (ECB) has decided to expand its initiative to settle transactions recorded on distributed ledger technology (DLT) in central bank money.
It will build on the Eurosystem’s exploratory work on new technologies for wholesale central bank money settlement, conducted between May and November 2024 — known as ECB trials.
Piero Cipollone, executive board member at ECB, who oversees the initiative, says: “We are embracing innovation without compromising on safety and stability.
“This is an important contribution to enhancing European financial market efficiency through innovation. Our approach will pay due attention to the Eurosystem’s goal of achieving a more harmonised and integrated European financial ecosystem.”
As soon as feasible, the Eurosystem will develop and implement a platform for settlements in central bank money through an interoperability link with TARGET Services.
Second, the Eurosystem will look into a more integrated, long-term solution for settling DLT-based transactions in central bank money, including foreign exchange settlement.
The Eurosystem aims to support the use of innovative solutions in its market infrastructures while maintaining the safety and efficiency of TARGET Services.
The initiative is expected to contribute to establishing an integrated European market for digital assets, in line with the ECB’s call for promoting a digital capital markets union.
It will build on the Eurosystem’s exploratory work on new technologies for wholesale central bank money settlement, conducted between May and November 2024 — known as ECB trials.
Piero Cipollone, executive board member at ECB, who oversees the initiative, says: “We are embracing innovation without compromising on safety and stability.
“This is an important contribution to enhancing European financial market efficiency through innovation. Our approach will pay due attention to the Eurosystem’s goal of achieving a more harmonised and integrated European financial ecosystem.”
As soon as feasible, the Eurosystem will develop and implement a platform for settlements in central bank money through an interoperability link with TARGET Services.
Second, the Eurosystem will look into a more integrated, long-term solution for settling DLT-based transactions in central bank money, including foreign exchange settlement.
The Eurosystem aims to support the use of innovative solutions in its market infrastructures while maintaining the safety and efficiency of TARGET Services.
The initiative is expected to contribute to establishing an integrated European market for digital assets, in line with the ECB’s call for promoting a digital capital markets union.
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