R3 has been selected by CSD Prague, the Central Securities Depository of the Czech Republic, to provide the technology for its newly approved DLT-based settlement system. CSD Prague, known for its expertise in securities registration and settlement services, will use R3’s Corda as part of its efforts under the European DLT Pilot Regime.
The European DLT pilot encourages market innovation by providing a legal framework under which approved, regulated financial institutions can develop new forms of market infrastructure utilizing DLT. R3’s Corda platform is the first authorized DLT platform to be approved by the European Securities and Markets Authority (ESMA) for the pilot regime.
It supports network sovereignty, offering institutions control over the networks they issue onto. Flexible, secure, and scalable, Corda is designed to meet the needs of regulated financial markets, supporting robust investor protections and preserving market integrity, stability, and transparency. This collaboration aligns with R3’s vision of creating a more open, trusted, and adaptable digital economy and its commitment to advancing interoperability between permissioned and permissionless networks.
For CSD Prague, adopting Corda offers robust technical capabilities including secure tokenization and settlement services. Focused on enhancing local projects such as Czech securities and bonds, CSD Prague aims to modernize its infrastructure, increasing efficiency while ensuring compliance with European financial regulations. Corda’s interoperability features will also help CSD Prague expand its reach to broader European markets, enabling them to transact with legacy systems as well as different types of DLT networks.
Kate Karimson, chief commercial officer at R3, said in a statement: “The European DLT Pilot Regime marks a critical milestone for the digital asset community and CSD Prague has been a pioneer in bond market innovation.”
Ondřej Dusílek, CEO of CSD Prague, said in a statement: “Although we are focusing on settlement in the domestic market, Corda’s interoperability is very promising. As we look towards the future, this interoperability will be important for expanding our offerings and connecting with a broader range of financial systems while remaining compliant with EU standards.”