The European Central Bank published a presentation outlining the Eurosystem’s exploratory work in tokenization. Planned activities include mock settlement of the cash and asset legs in test environments and there will be settlement of transactions in central bank money in a limited setting for a limited period of time.
Europe is among the first advanced economies to go beyond experimentation, with 10 market participants with access to TARGET and six market DLT operators approved to participate. Additional financial firms and business cases are expected in Wave 2 starting in July.