#DigitalBonds #wCBDC #SwissBank #DLT #Fintech #ProjectHelvetia #BlockchainTechnology #SIXDigitalExchange
Following a successful attempt, Swiss banks, along with the Cantons of Basel-City and Zurich have broken new grounds in the issuance of digital bonds. This marks the first successful issuance utilizing real CHF wholesale central bank digital currency (wCBDC) on SIX Digital Exchange (SDX). The experiment is a significant part of the Project Helvetia Phase III, which was initiated by the Swiss National Bank (SNB) with the objective of facilitating pilot wCBDC transactions for different financial institutions from December 2023 until the mid-2024. During the project, both Basler Kantonalbank and Zürcher Kantonalbank played key roles as the issuer agents for the regions.
The digital bonds issued by Basel-City and Zurich makes a significant leap in the application of distributed ledger technology (DLT) in core financial activities. This use signifies a core shift in the finance domain, as highlighted by David Newns, Head of SIX Digital Exchange. He described the settlement of the first securities transactions in wCBDC in a developed economy as a major milestone for the entire industry. Furthermore, it crucially emphasizes the potential benefits of this technology, such as increased transparency and efficiency gains in global financial transactions. This evolving role of tokenized, DLT-financial markets infrastructure could create a new industry standard. Additionally, while blockchains are a variant of DLT, not all DLTs should be defined as blockchains, suggesting that the Swiss financial sector is exploring a varied range of distributed ledger technologies beyond the conventional blockchain model.
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