Banks DekaBank and DZ Bank issue commercial paper via Clearstream's D7 platform, contributing to the European Central Bank's distributed ledger technology experiments.

Deutsche Boerse's digital securities platform, D7, took a significant step forward in 2021 with the successful issuance and settlement of commercial paper transactions. This development is considered an important milestone in the creation of a digital European securities landscape.

Clearstream, a post trade subsidiary of Deutsche Boerse, hosted the issuance of two €5 million papers, one by DekaBank and the other by DZ Bank. These transactions marked the first time Clearstream issued transactions for commercial paper on the decentralized D7 DLT.

Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, emphasised the importance of D7 DLT in providing seamless processing of digital assets and high-quality cash on-chain. He stated that this step is crucial in developing a digital European securities landscape.

The transactions were part of the Eurosystem wholesale DLT trials using central bank money for settlement. The banks involved in the transactions, DekaBank and DZ Bank, acted as investors in each other's bonds. The transactions were settled using the Bundesbank Trigger solution, which links to the TARGET2 payment system.

Clearstream has a history of hosting the issuance of several billion euros of securities using its centralized depository. The use of D7 DLT in these transactions is considered an important step in moving towards a more digital and efficient European securities market.

The Eurosystem wholesale DLT trials continue to progress, with this transaction being one of the latest developments. The trials aim to explore the potential of distributed ledger technology (DLT) in the settlement of securities transactions using central bank money.

In conclusion, the successful issuance and settlement of commercial paper transactions on the D7 DLT platform by Clearstream is a significant step towards the development of a digital European securities landscape. The seamless processing of digital assets and high-quality cash on-chain provided by D7 DLT is expected to play a crucial role in the future of European securities transactions.

Banks DekaBank and DZ Bank issue commercial paper via Clearstream's D7 platform, contributing to the European Central Bank's distributed ledger technology experiments.