#DLT
24 articles tagged #DLT — curated RWA tokenization coverage.
Taurus links digital asset platforms to Swift’s blockchain ledger
Digital asset infrastructure provider Taurus has integrated its tokenization and custody platforms with the Swift blockchain-based ledger to facilitate cross-border payments. This integration allows Taurus clients to connect their existing infrastructure to the Swift network, enabling the use of bank-issued tokenized deposits for settlement. The move marks a significant step in bridging traditional banking systems with distributed ledger technology, as Taurus expects the first institutional client integrations to go live within days. Initial transactions facilitated through the platform are anticipated to occur within weeks, signaling rapid adoption of the infrastructure. Swift’s ledger acts as an orchestration layer, coordinating transfers between participating banks before final settlement occurs through established arrangements like real-time gross settlement systems. This development follows successful pilot tests by major institutions, including Standard Chartered and HSBC, which recently completed the first live cross-border transaction on the ledger. By streamlining the interoperability of tokenized deposits, this partnership enhances the efficiency and speed of global institutional payments.
ECB Commits Central Bank Money to Tokenised Settlement With Pontes Launch
The European Central Bank (ECB) is launching its Pontes settlement system in 2026, marking the first time central bank money will be used for settlement on distributed-ledger technology (DLT) platforms as an operational service. By connecting market DLT platforms to the Eurosystem’s TARGET Services, Pontes enables delivery-versus-payment finality, eliminating the credit and liquidity risks associated with private settlement assets like stablecoins or commercial bank money. To drive rapid adoption, the ECB has implemented an aggressive pricing strategy, charging only a one-off onboarding fee with no recurring transaction costs at launch. The system will initially operate 22.5 hours per business day, with plans to transition to a 24/7, multi-currency service by mid-2028. This initiative follows the Eurosystem’s 2024 exploratory phase, which involved over 50 trials and 64 market participants to prove the technical viability of DLT-based central bank money settlement. Alongside Pontes, the ECB is developing the Appia project to provide a blueprint for an integrated European tokenized financial ecosystem by 2028. These developments are critical for the RWA market, as they address the fragmentation of the European financial system and provide the necessary infrastructure for tokenized assets to function within the broader funding system.
India plans 1st tokenised bond issue in Sept | Business Standard - newspaper
The Reserve Bank of India (RBI) is preparing to launch its inaugural tokenized government bond issuance scheduled for September. This initiative marks a significant shift in the nation's debt management strategy, aiming to leverage blockchain technology to enhance efficiency and transparency in the sovereign bond market. By utilizing distributed ledger technology, the RBI intends to streamline the settlement process and reduce the reliance on traditional intermediaries. This move aligns with global trends where central banks are increasingly exploring tokenization to modernize financial infrastructure and improve liquidity for government securities. The pilot project is expected to provide critical insights into the scalability and security of digital bond issuance within the Indian financial ecosystem. Successful implementation could pave the way for broader adoption of tokenized assets across the country's capital markets. This development underscores India's commitment to integrating advanced digital solutions into its sovereign debt framework, potentially setting a precedent for other emerging economies.
Exclusive-India plans first tokenised bond issue in September, sources say
India is set to launch its first tokenized corporate bonds next month, marking a significant step in integrating blockchain technology into the nation's financial infrastructure. State-owned power financier REC will lead the pilot issuance, offering bonds valued at less than 5 billion rupees, or approximately $57 million. This initiative, supported by the Reserve Bank of India and market regulators, aims to enable near-instant settlement of bond transactions. Investors will utilize a wholesale central bank digital currency (CBDC) wallet alongside a new electronic securities wallet, known as DEMAT 2.0, to manage holdings on a distributed ledger. The pilot will initially be restricted to a select group of investors, with a three-month lock-in period for the securities. By bypassing traditional electronic book provider platforms, the project seeks to modernize the issuance and trading lifecycle. This move aligns India with global markets like Hong Kong and Europe that are actively exploring blockchain-based securities. A secondary market for these tokenized assets is expected to be developed by December.
HSBC, Standard Chartered make first live tokenized deposit tranfer via Swift blockchain
HSBC and Standard Chartered have successfully executed the first live tokenized deposit transfer utilizing Swift’s blockchain-based ledger infrastructure. This milestone addresses the critical industry challenge of interoperability, as most existing tokenized deposits are restricted to single-bank silos. By leveraging Swift’s DLT-based solution, the banks enabled a cross-border payment that demonstrates the potential for 24/7 settlement across different financial institutions. This development follows Swift’s July announcement regarding its minimum viable product, which currently involves 17 global banks across six continents. The rapid transition from the pilot phase to a live transaction highlights an accelerating trend in institutional adoption of DLT for traditional banking services. The participation of these banks in initiatives like the Hong Kong Monetary Authority’s EnsembleX likely provided the technical foundation for this successful integration. This event marks a significant step toward unifying fragmented tokenized deposit ecosystems into a cohesive global network.
Africa Finance Corporation Issues CHF 350 Million Tokenised Bond On Swiss Digital Exchange
The Africa Finance Corporation (AFC) has successfully issued a CHF 350 million digital bond, marking the first time an African institution has utilized the SIX Digital Exchange (SDX) for such a transaction. This five-year bond, which is also listed on the traditional SIX Swiss Exchange, represents the largest digital bond ever issued in the Swiss franc market. The issuance was structured as a tokenized security using distributed ledger technology, with settlement managed through the regulated infrastructure of SIX SIS AG. Commerzbank AG and Deutsche Bank AG acted as the lead arrangers for the deal, which saw strong demand from Swiss domestic investors. By leveraging SDX’s interoperability with traditional custodial systems, the AFC was able to attract institutional participation without requiring investors to overhaul their existing infrastructure. This milestone highlights the growing trend of supranational and development finance institutions adopting DLT to diversify funding sources and improve capital market efficiency. The success of this issuance underscores the increasing maturity of regulated digital bond markets and the potential for tokenization to bridge the gap between traditional finance and blockchain-based settlement.
Project Pontes: why a trigger solution is still needed alongside wCBDC
Project Pontes, launching in September, introduces two distinct settlement mechanisms for DLT transactions within the Eurosystem. The framework offers a wholesale CBDC-like cash token and a trigger solution that connects DLT platforms to the existing TARGET2 (T2) payment system. While the cash tokens allow for intraday circulation between banks, they currently lack legal settlement finality because they function as proxies for central bank money rather than direct wCBDC. Settlement finality is only achieved when tokens are burned and funds are defunded back to the T2 account, a process currently automated only at the end of the business day. This limitation makes the trigger solution a more attractive option for institutions requiring immediate, irreversible settlement. The European Central Bank has indicated that a technical upgrade to address these finality issues for DLT-based cash tokens is expected by mid-2027. This development highlights the ongoing regulatory and technical challenges in bridging traditional central bank payment systems with emerging distributed ledger technologies.
India's SEBI Confirms Its Corporate Bond Tokenization Pilot Is Actually Moving
The Securities and Exchange Board of India (SEBI) has confirmed in its annual report that a pilot program to tokenize India's ₹59 lakh crore corporate bond market is actively proceeding. This initiative aims to leverage distributed ledger technology to enhance settlement speeds, introduce smart-contract-based programmability, and integrate directly with the Reserve Bank of India's wholesale central bank digital currency (CBDC). By building upon existing blockchain-based monitoring systems already utilized by depositories NSDL and CDSL, SEBI intends to automate debt servicing and settlement processes. The project seeks to address the structural thinness of the secondary bond market, where institutional investors typically hold assets to maturity. SEBI chairman Tuhin Kanta Pandey has framed the pilot as an exploratory efficiency test, with a projected implementation timeline of six to nine months. This development is significant because it advances within established securities regulations, effectively bypassing the ongoing legislative uncertainty surrounding broader cryptocurrency policy in India. By focusing on institutional infrastructure rather than retail crypto, the initiative positions India as a serious participant in the global movement toward tokenized government and corporate debt.
Tokenized Cash: Transforming Traditional Money for the Digital Economy
The financial industry is undergoing a significant transformation as traditional money evolves into programmable, tokenized cash to support the digital economy. Tokenized cash serves as a digital representation of fiat currency, enabling instantaneous, atomic settlement of transactions on distributed ledger technology. By replacing legacy messaging systems with smart contracts, financial institutions can reduce counterparty risk and eliminate the inefficiencies associated with multi-day clearing cycles. This shift is particularly critical for the growing RWA market, where the ability to settle tokenized assets like bonds or real estate against on-chain cash is essential for liquidity. The integration of tokenized deposits and stablecoins into institutional workflows allows for 24/7 operations, moving beyond the constraints of traditional banking hours. As global financial hubs explore these digital alternatives, the interoperability between different blockchain networks and legacy systems remains a primary focus for developers. Ultimately, the adoption of tokenized cash acts as the foundational layer for a more efficient, transparent, and automated global financial infrastructure.
India’s SEBI plans tokenization, DLT pilots for corporate bonds
The Securities and Exchange Board of India (SEBI) has officially confirmed plans to launch a pilot program for tokenizing corporate bonds using distributed ledger technology. As outlined in its annual report, the regulator aims to leverage blockchain to achieve faster settlement, improved operational efficiencies, and enhanced programmability via smart contracts. The initiative also seeks to explore integration with India's central bank digital currency (CBDC) for settlement mechanisms. SEBI Chairman Tuhin Kanta Pandey indicated that the trial will operate on a limited scale over a six to nine-month period. This move is intended to address fragmentation within the Indian corporate bond market, which has historically lagged behind sovereign and financial institution issuances in the digital space. While global precedents like Siemens' €360 million issuance and POSCO International's $100 million bond demonstrate the potential for corporate blockchain adoption, India's pilot will build upon existing infrastructure like the CBDC and Asset Tokenisation (CAT) Sandbox. By testing these technologies, SEBI aims to modernize debt market infrastructure and align with broader digital financial trends.
ECB targets 21 September go live for Project Pontes. A primer on tokenized central bank money
The European Central Bank (ECB) has scheduled the production launch of Project Pontes for September 21, marking a significant step in integrating tokenized central bank money into financial markets. This initiative provides financial institutions with a secure mechanism to settle distributed ledger technology (DLT) transactions using the safest form of money available. Pontes introduces two distinct settlement models: the use of cash tokens residing on the Eurosystem’s DLT or a trigger model that initiates conventional payments via the T2 real-time gross settlement system. By prioritizing central bank money over commercial bank alternatives or stablecoins, the ECB aims to reduce counterparty risk in digital asset transactions. Institutions intending to participate in the initial launch must complete mandatory testing and register with their respective national central banks by August 7. This development is critical for the RWA market as it establishes a standardized, risk-free settlement layer for tokenized assets within the Eurozone. The project underscores the ECB's commitment to modernizing financial infrastructure while maintaining the integrity of sovereign currency in a blockchain-enabled ecosystem.
Cecabank, Crédit Mutuel join Regulated Layer One tokenization platform as it launches
The Regulated Layer One (RL1) blockchain cooperative has officially launched in Luxembourg, marking a significant step toward a neutral European network for tokenized asset settlement. SWIAT has transferred its DLT platform to the new organization while remaining the primary technical partner. The initiative now includes ten founding members, with the recent addition of Spanish wholesale bank Cecabank and the French cooperative Crédit Mutuel. This launch coincides with the Eurosystem’s Project Pontes, which facilitates on-chain settlement using central bank money and wholesale CBDCs. The membership roster features major institutions such as ABN Amro, DekaBank, DZ Bank, LBBW, Natixis CIB, SC Ventures, and Boerse Stuttgart’s Seturion. While L-BANK and KfW have transitioned to supporter roles, the network aims to provide a robust infrastructure for the evolving European digital asset market. By establishing this collaborative framework, RL1 seeks to standardize the issuance and settlement of tokenized financial instruments across the continent.
HSBC first bank to receive BoE approval for Digital Securities Sandbox
HSBC has become the first financial institution to receive approval from the Bank of England to operate within the UK’s Digital Securities Sandbox. This regulatory milestone allows the bank to utilize its HSBC Orion platform to perform live securities depository and settlement services using distributed ledger technology. By waiving legacy regulatory requirements, the sandbox enables HSBC to provide the central bank with critical real-world data on the efficacy of tokenized financial infrastructure. A primary objective of this participation is the inaugural issuance of the government’s Digital Gilt Instrument, or DIGIT, scheduled for the first quarter of 2027. This pilot project represents a significant step in the UK government's broader strategy to digitize financial markets and foster sector-wide innovation. The initiative aligns with recent treasury reports suggesting that a transition to digitized finance could generate a £33 billion economic uplift for the UK. This development marks a pivotal shift toward institutional adoption of DLT for sovereign bond issuance and lifecycle management.
Fidelity Pushes for SEC Rules on Tokenized Asset Trading
Fidelity Investments has formally petitioned the U.S. Securities and Exchange Commission to modernize regulatory frameworks to better accommodate tokenized asset trading. General Counsel Roberto Braceras highlighted the friction between centralized and decentralized trading venues, noting that current SEC reporting requirements are incompatible with disintermediated blockchain systems lacking a central authority. Fidelity proposes that the SEC issue specific guidance allowing broker-dealers to utilize distributed ledger technology for alternative trading system recordkeeping to alleviate these operational burdens. This initiative aligns with a broader shift in regulatory sentiment, as SEC Chairman Paul Atkins has signaled support for 24/7 capital markets and blockchain experimentation. Furthermore, the Federal Reserve, FDIC, and OCC have clarified that tokenized securities remain subject to existing banking capital requirements regardless of the underlying issuance technology. These developments are critical for the RWA market as they address the legal infrastructure necessary to bridge traditional finance with decentralized ledger systems. By seeking to harmonize reporting standards, Fidelity aims to facilitate a more seamless integration of tokenized equities, debt, and real estate into the regulated financial ecosystem.
Brazil’s CVM Launches Task Force to Draft Tokenized Securities Rules
The Brazilian Securities and Exchange Commission (CVM) has established a 14-department task force to create a comprehensive regulatory framework for tokenized securities. This initiative aims to address the unique infrastructure challenges posed by distributed ledger technology, which often consolidates traditional roles like custody, settlement, and registration into single blockchain-based systems. The task force is mandated to submit an initial draft within 60 days, followed by a 120-day public and expert review period. This development is significant as Brazil's tokenized asset market has reached approximately $2.34 billion, with corporate bonds and commercial paper accounting for $1.3 billion of that valuation. By focusing on the underlying infrastructure rather than the assets themselves, the CVM seeks to resolve critical questions regarding ownership records, private key management, and systemic liability. The framework will also incorporate findings from previous blockchain-based experiments conducted within the CVM’s regulatory sandbox. This move signals a proactive approach by a major emerging market regulator to formalize the integration of DLT into the national financial system.
HSBC Becomes First to Clear Bank of England Hurdle for UK Digital Securities Sandbox
HSBC has become the first financial institution authorized by the Bank of England to operate within the Digital Securities Sandbox (DSS). This regulatory milestone allows the bank to utilize its HSBC Orion platform to act as a digital securities depository for the issuance, trading, and settlement of digital assets. The initiative focuses on supporting the UK government's upcoming digital gilt instrument, known as DIGIT, alongside digital corporate bond issuances. HSBC has already facilitated $5 billion in global digital bond issuances, providing a strong foundation for this new regulatory testing environment. The UK Treasury expects the first DIGIT pilot transaction to occur in the first quarter of 2027, supported by a memorandum of understanding between HSBC and the London Stock Exchange Group. By integrating DLT into core market infrastructure, the DSS aims to streamline traditional multi-tiered intermediary structures and significantly reduce settlement times. This development marks a critical step in the institutionalization of digital assets within the UK, positioning London as a leader in regulated blockchain-based financial markets.
Tokenized Deposits Explained: What Swift’s Multi
Swift has successfully completed a multi-bank pilot program testing the integration of tokenized deposits across diverse distributed ledger technology (DLT) networks and existing fiat payment systems. By leveraging its established messaging infrastructure, Swift demonstrated that tokenized assets can move seamlessly between different blockchains and traditional bank ledgers without requiring a single global network. This initiative involved major global financial institutions, including Citi, Deutsche Bank, and HSBC, to validate interoperability in a fragmented digital asset landscape. The pilot proves that banks can maintain their existing regulatory compliance and liquidity management frameworks while adopting blockchain-based settlement. This development is significant for the RWA market because it provides a scalable blueprint for institutional-grade settlement of tokenized assets. By bridging the gap between DLT and legacy systems, Swift reduces the friction that has historically hindered the adoption of tokenized deposits. Ultimately, this move signals a shift toward a hybrid financial ecosystem where tokenized value can coexist with traditional banking infrastructure.
Emirates NBD goes live on Partior DLT settlement network
Emirates NBD has officially joined the Partior DLT-based clearing and settlement network, marking the first instance of a MENAT region bank participating in the platform. This integration follows a preliminary exploration phase announced in November 2024 and represents the first stage of a broader strategic rollout. While initial plans suggested the bank would act as a settlement provider for UAE Dirham, Saudi Riyal, and Indian Rupee, the current deployment focuses on USD-denominated transactions. JP Morgan facilitated the inaugural transaction, serving as both the settlement and beneficiary bank for Emirates NBD’s corporate and institutional clients. By leveraging Partior’s blockchain infrastructure, the bank aims to modernize cross-border payments and eventually expand its capabilities to include multi-currency support and broader interbank connectivity. This development is significant for the RWA and institutional finance sectors as it demonstrates the growing adoption of DLT for streamlining correspondent banking processes. The move highlights the shift toward programmable settlement layers that reduce friction in international liquidity management.