BERN, Switzerland—The Swiss National Bank – together with five Swiss and one German commercial bank – have started a pilot project with a central bank digital currency for financial institutions on the regulated platform of SIX Digital Exchange (SDX).
“With this pilot, called Helvetia Phase III, the SNB will for the first time issue a real wholesale CBDC in Swiss francs on a financial market infrastructure based on distributed ledger technology (DLT),” FinTech News reported. “The SNB is thus moving its work from test environments into production and is making wholesale CBDC available for the settlement of real bond transactions.”
How it Will Work
According to the report, the banks involved will carry out the transactions on the DLT platform as intermediaries for issuers and investors. The tokenized bonds will be settled against wholesale CBDC on a delivery-versus-payment basis.
The pilot with real Swiss franc wholesale CBDC is scheduled to run from December 2023 to June 2024. The participating banks are Banque Cantonale Vaudoise, Basler Kantonalbank, Commerzbank, Hypothekarbank Lenzburg, UBS and Zürcher Kantonalbank.
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