- Issuance of live, CSDR-compliant securities based on distributed-ledger technology (DLT)
- Developed by Deutsche Börse Group using Google Cloud technology
- Launch follows first live use cases on D7 DLT during 2024 ECB Trials
Clearstream announced it’s launched a tokenized securities platform: D7 DLT, which facilitates the issuance and management of securities based on distributed-ledger technology (DLT) and fully compliant with the Central Securities Depositories Regulation (CSDR). It complements Clearstream’s existing D7 digital issuance platform, providing clients with the choice between digital and tokenized issuance.
D7 DLT will be first rolled out into the international market and available to issuer clients of Clearstream Banking S.A, to support Eurobonds. The first expected issuances are commercial papers (CPs) and medium-term notes (MTNs) in Q1 2026 and will support treasurers to generate funding on an intraday basis.
Sam Riley, CEO at Clearstream Securities Services, said during a media briefing that the number of issuances are likely to increase but in smaller lots because treasurers can respond to market events almost instantaneously for cash liquidity needs across nearer-term time horizons — 6 months versus 2 years for example.
Thilo Derenbach, head of Sales & Business Development Digital Securities Services at Clearstream, added that this capability is particularly relevant for the initial financial products in focus: “A 30-year bond is not going to benefit from an intraday issuance, but this shorter term paper definitely will.”
Platform-as-a-Service for global and regional market infrastructures
Riley also highlighted several initiatives that he expects will continue and expand: connecting Nasdaq to T2S, as well as establishing triparty collateral services jointly with market infrastructures in Australia, South Africa, Canada and most recently Saudi Arabia, among them. “We bring the technology and the product set to that jurisdiction, but it also brings that jurisdiction to the rest of the world through our client base and connectivity,” he explained.
Closer to home, Clearstream’s D7 platform is positioned to solve challenges related to smaller European CSDs’ demands for sovereignty amid a push towards more harmonization in the EU bloc. “We are working now…with other players in Europe and with a couple of law firms to be able to make sure that we have a proposal that we think is fit for purpose for Capital Markets Union, and we will present that to the marketplace and the European commission hopefully before the end of the year,” said Riley.
Key benefits of D7 DLT:
- Streamlined issuance and lifecycle management: The platform enables the issuance of tokenized securities directly onto the DLT, streamlining processes and reducing the complexity associated with traditional issuance methods.
- Enhanced transparency and security: DLT provides an immutable and transparent record of ownership and transactions, enhancing security and reducing the risk of fraud. This builds trust and fosters greater efficiency in post-trade processing.
- Unparalleled accessibility and interoperability: The D7 DLT platform allows for integration with existing market infrastructure, facilitating broader investor reach and interoperability for a wide range of international market participants. It will also integrate with trading venues such as Deutsche Börse Group’s own 360X multi-lateral trading facility (MTF) which can service securities natively issued on DLT.
D7 DLT’s launch follows trials conducted as part of the European Central Bank (ECB) Trials and Experiments in 2024. During these trials, Clearstream executed several live issuances with various partners, encompassing complex use cases and diverse asset classes such as commercial paper and intraday repo transactions. The demonstration of the platform’s ability to manage both securities and central bank digital currency (CBDC) positions it for future scalability and innovation.
Jens Hachmeister, head of Issuer Services and New Digital Markets at Deutsche Börse and a member of Clearstream’s Management Committee, said in a statement: “D7 is reinventing how securities are issued, managed, and traded, benefiting all market participants, providing the flexibility to choose between digital and tokenized issuance. The platform offers a unique combination of innovation and practicality, addressing current client needs while paving the way for the future of finance, advancing capital markets in Europe and globally.”
Google Cloud provides D7 DLT with secure infrastructure, technical expertise, and cloud capacity. “By combining our secure and scalable infrastructure with Clearstream’s expertise in distributed ledger technology, we’re helping to redefine how securities are issued and managed. This platform is not just about meeting today’s needs; it’s also about building a more efficient, transparent, and secure future for capital markets globally,” said Matt Renner, president for Global Revenue at Google Cloud, in a statement.