BNP Paribas Pilots Blockchain Initiatives : a first step
BNP Paribas, convinced of blockchain’s potential in tokenized asset operations, has taken steps to explore large-scale settlement solutions. This initiative is supported by central banks, including the Bank of France. Under the guidance of the Eurosystem, the bank has embarked on blockchain operations, showcasing its dedication to digital financial advancements. BNP Paribas Pilots Blockchain Initiatives : discover everything to know now
Collaboration with Central Banking Giants
BNP Paribas has announced trials of three innovative settlement solutions. These efforts involve the Bank of France, Deutsche Bundesbank, and Banca d’Italia. The experiments are part of an ambitious Eurosystem project, incorporating the European Central Bank (ECB) and national central banks across Europe.
Earlier this year, the Eurosystem invited financial institutions to explore the benefits of digital asset settlements. These included using central bank digital currencies (CBDCs) and cash on distributed ledgers (DLT). BNP Paribas accepted the challenge, foreseeing digital assets as a transformative force in capital markets.
Efficiency in Tokenized Financial Tools
According to BNP Paribas, tokenized tools enhance settlement processes with greater speed and efficiency. The programmability of blockchain further drives this capability. The bank successfully tested three pioneering solutions:
- The Bank of France’s DLT interoperability tool
- Deutsche Bundesbank’s ‘Trigger’ solution
- Banca d’Italia’s ‘TIPS Hash-Link’
Leveraging Proprietary Tokenization Platforms
Approximately ten use cases were explored with these tools. BNP Paribas utilized its Neobonds platform, built on the private blockchain Canton, and AssetFoundry, developed on Ethereum. These platforms facilitated the issuance of the first digital sovereign bond in the eurozone, enabling Slovenia to benefit from this innovative approach.
The Bank of France’s Director General, Emmanuelle Assouan, expressed satisfaction with the achievement. She highlighted the success of central bank digital currency solutions and emphasized the adaptive approach needed to foster decentralized finance while maintaining financial stability.
BNP Paribas Pilots Blockchain Initiatives : European Investment Bank’s €100 Million Digital Bond
A Milestone in Blockchain Settlements
The European Investment Bank (EIB) recently completed a €100 million digital bond transaction, set to last three years. This transaction was recorded and settled on ORION, a platform managed by HSBC. The EIB also tested the German Trigger solution in collaboration with BNP Paribas, using the Neobonds and AssetFoundry platforms.
Insights from Distributed Ledger Technology
Julian Reischle of Deutsche Bundesbank praised these experiments for their valuable insights. He highlighted how Distributed Ledger Technology (DLT) offers enhanced efficiency, security, and transformative changes in financial settlements.
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