ABN AMRO announced its completed a second use case as part of the Eurosystem Central Bank Digital Currency (CBDC) trials, executing four repo pilot trades with central bank money settlement on Distributed Ledger Technology (DLT) – a digital version of the euro that is available exclusively during the trials – and utilizing a tokenised commercial paper (CP) as collateral.
ABN AMRO is participating in these ECB-organized trails to gain expertise in CBDC usage before its wider adoption, enhance digital capabilities across the securities lifecycle, and explore innovative balance sheet management applications like intraday liquidity management.
The ECB-organized trials, running from May 2024 to November 2024, offer institutions the chance to test euro central bank money settlement with Distributed Ledger Technology (DLT). The participation in the Eurosystem trials positions ABN AMRO at the forefront of the development of the European financial markets towards digital assets and cash settlement on blockchains.
“Together with other European participants ABN AMRO is shaping the digital assets landscape and paves the way for the digital euro,” said Sander Wever, head of Money Markets and Securities Financing at ABN AMRO, in a statement. “The CBDC repo trial allows ABN AMRO to explore novel collateral types (tokenized CP issued by ABN AMRO), on-chain settlement and intraday liquidity management solutions for the future.”