Convinced of the value of using blockchain to carry out financial transactions involving tokenized assets, BNP Paribas has experimented with several wholesale settlement solutions with the support of several central banks, including the Banque de France.
At the request of the Eurosystem, BNP Paribas carries out operations on the blockchain
This Friday, BNP Paribas announced that it had tested 3 innovative solutions around digital wholesale settlement with the support of the Banque de France, the Deutsche Bundesbank and the Banca d'Italia.
These tests were carried out within the framework of a full-scale experiment part of a project led by the Eurosysteman entity bringing together the European Central Bank (ECB) as well as the European national central banks.
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Earlier this year, the Eurosystem invited several financial institutions has ” explore the benefits of digital asset settlement »understand central bank digital currencies (MNBC), but also “ cash on distributed ledgers (DLT) “.
BNP Paribas accepted this invitation, convinced that “ digital assets represent a major technological advancemente and open up new perspectives for capital markets “. According to the banking institution, “ tokenized financial instruments can be settled more efficiently and instantly thanks in particular to the programmability available on the blockchain “.
The French bank was able to test the following payment tools: the complete DLT interoperability solution (distributed ledger technology) of the Banque de France, the Trigger solution of the Deutsche Bundesbank and TIPS Hash-Link of Banca d'Italia.
In total, 10 use cases were executed with the 3 solutions. To carry out its experiments, BNP Paribas used Neobondsits tokenization platform based on the Canton private blockchain, as well asAssetFoundryits platform based on the Ethereum blockchain.
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Towards adoption of blockchain-based financial transactions in Europe
Note that these tests made it possible to achieve on the issuance of the 1st digital sovereign bond in the euro zone to Slovenia, thanks to the use of Neobonds and the solution proposed by the Banque de France.
Emmanuelle Assouan, general director of financial stability and operations for the Banque de France, was delighted with the success of this hitherto unprecedented operation :
[Cette opération] complements the numerous experiments carried out by the Banque de France actively contributing since 2020 by offering market participants a settlement solution in central bank digital currency. It demonstrates our desire to embrace all perspectives, particularly those of investors, to support the development of decentralized finance while preserving financial stability.
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Among other use cases tested, BNP Paribas was at the center of the European Investment Bank's digital mandatory issue of 100 million euros over 3 years. This bond was registered and settled on ORION, a platform managed by HSBC.
She also experimented with the German Trigger solution in order to settle a BNP Paribas bondissued and settled on Neobonds. The same test was carried out on AssetFoundry. For Julian Reischle, Managing Director of Payment and Settlement Systems for the Deutsche Bundesbank, these tests made it possible to “ learn from the settlement of wholesale financial transactions based on DLT technology ».
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Source: Press release
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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