As part of an experimental program led by the Banque de France, more than ten fund share transactions, for a total amount of over 2 million euros, were carried out in December 2020 on a platform blockchain UCITS from IZNES using banking digital currency (CBDC).
The pilot, carried out in collaboration with SETL, Citi, CACEIS, Groupama AM, OFI AM and DXC, marks the first settlement of fund shares by CBDC.
The initiative is part of the various experiments underway at the Banque de France on the potential applications of a central bank digital currency in interbank settlements.
For this project, SETL provided the DLT technology as well as the technology behind the issuance and redemption of CBDC tokens, in conjunction with the technological team of the Banque de France and IZNES. DXC oversaw the security issues.
Citi and CACEIS acted as commercial banks to use the CBDC tokens created by the Banque de France. CACEIS is also custodian of the “Groupama Entreprises” fund. Groupama AM acted as fund manager, while OFI AM and SETL acted as investors on their own account.
Elsewhere in Europe, Zürcher Kantonalbank (ZKB) and Deutsche Börse’s post-trade service provider Clearstream successfully processed their first blockchain-based end-to-end fund transactions, using FundsDLT, a platform decentralized for processing fund transactions. The project, which involved an end investor submitting a funds transaction request through a mobile app directly on the private blockchain, reduced the overall processing time from order placement to confirmation from hours to just minutes. .