SETL, the London-based settlement and payments infrastructure provider, announced that Banque de France (BDF) has successfully completed a central bank digital currency (CBDC) transaction using the SETL blockchain that powers the IZNES fund platform.
The CBDC tokens were used to subscribe to a fund on the platform and represented the world’s first successful live settlement of a fund using CBDC tokens. The experiment was carried out on the IZNES platform in collaboration with Citi, CACEIS the custody bank of Groupe Credit Agricole, Groupama Asset Management, OFI Asset Management, and DXC Technology.
As part of this experiment, shares of the money market fund ‘Groupama Enterprises’ were subscribed and then redeemed on the IZNES Platform using Central Bank Digital Currency tokens created by Banque de France. The global amount of the transactions exceeded €2 million.
SETL provided both the distributed ledger technology (DLT) as well as the infrastructure underpinning the issuance and redemption of the CBDC tokens, in collaboration with the BDF and IZNES technology teams. Citi and CACEIS acted as the participating commercial banks to purchase CDBC tokens from Banque de France. CACEIS also acted as the custodian of the Groupama funds.
As reflected in the Banque de France’s own statement, this experiment represents a significant step forward in assessing the contribution that CBDCs can make in the real economy. The successful fund experiment tests the levers that a central bank digital currency provides for enhancing the efficiency and resilience of the settlement of financial assets in a blockchain environment.
Philippe Morel, SETL’s CEO, said in a statement: “Further to the successful delivery of our two market infrastructures – the Fund Platform IZNES and the ID2S Central Securities Depository, we are now excited to take our payments offering to the next level.”