Banks DekaBank and DZ Bank utilize Clearstream's D7 platform to issue commercial paper during European Central Bank's DLT experiments.

In a significant stride towards the digital transformation of the European securities landscape, Clearstream, a post-trade subsidiary of Deutsche Boerse, has successfully executed its first transactions for commercial paper on the decentralized D7 DLT platform.

The groundbreaking transactions, totalling €5 million, were issued by DekaBank and DZ Bank and settled using the Bundesbank Trigger solution. This solution links directly to the TARGET2 payment system, ensuring a seamless and secure settlement process.

The Bundesbank provided the solution trigger for use in the D7-DLT platform of Deutsche Boerse in March 2023. Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, expressed his excitement, stating, "The new D7 DLT provides seamless processing of digital assets and high-quality cash on-chain."

These transactions mark an important step in developing a digital European securities landscape. They form part of the ongoing trials and experiments in the digital securities landscape, with the banks acting as investors in each other's bonds.

It is worth noting that Clearstream has previously issued several billion euros of securities using its centralized depository. The successful execution of these transactions on the D7 DLT further underscores its potential in the digital securities market.

The article features a photograph by Timon Schneider from Dreamstime.com. For professional subscribers, more detailed insights and updates about these trials and developments can be accessed.

This is not just a milestone for Clearstream and the participating banks, but also for the entire European securities industry. As digital securities continue to gain traction, we can expect to see more innovative solutions and real-world applications in the near future.