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SNB To Check Tokenized Bond Transactions Utilizing CBDC


Swiss central financial institution continues to discover the potential of blockchain expertise.

On Nov. 2, the Swiss Nationwide Financial institution (SNB) introduced a pilot challenge referred to as Helvetia Section III that may contain the issuance of an actual wholesale CBDC in Swiss francs utilizing distributed ledger expertise supplied by Six Digital Alternate, a regulated platform.

The collaborating banks, together with Banque Cantonale Vaudoise, Basler Kantonalbank, Commerzbank, Hypothekarbank Lenzburg, UBS, and Zürcher Kantonalbank, will act as intermediaries for issuers and buyers in conducting bond transactions. The settlement of tokenized bonds can be performed on a delivery-versus-payment foundation utilizing the issued CBDC.

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The pilot challenge is scheduled to run from December 2023 to June 2024 and also will discover the buying and selling and settlement of repurchase (repo) transactions utilizing wholesale CBDC. The challenge will contain the usage of the SIC infrastructure for tokenization and SIX SIS for integration with the standard bond settlement infrastructure.

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The SNB goals to look at completely different fashions for settling tokenized asset transactions utilizing CBDCs. The findings from this pilot will contribute to the continuing analysis, however the SNB has clarified that it doesn’t symbolize a dedication to introduce a public CBDC.

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