Boerse Stuttgart Completes Tokenized Securities Settlement Tests in ECB DLT Trials

Boerse Stuttgart Group has completed a series of tokenized securities settlement tests as part of the ECB's wholesale DLT settlement trials, involving six major banks: Commerzbank, Deutsche Bank, DZ Bank, LBBW, Bankhaus Metzler, and V-Bank.

The banks connected to Boerse Stuttgart's blockchain-based settlement platform, which was linked to the Deutsche Bundesbank’s trigger solution to initiate payments on the Target 2 RTGS system. These tests were simulations and did not involve real cash.

The trials included five different tokenized securities, such as bonds, funds, and a share. While Boerse Stuttgart is conducting these tests in Germany, the platform will be used in BX Digital, its new Swiss exchange for tokenized securities launching later this year.

“Blockchain technology is a game changer for the digitalization of the European capital market. We at Boerse Stuttgart Group are pioneers in this field. With the successful completion of the ECB blockchain tests, we have taken an important step in the EU,” said Dr. Matthias Voelkel, CEO of Boerse Stuttgart Group.

Germany has favorable laws for tokenized securities issuance, but trading and settlement are regulated by EU laws under the DLT Pilot Regime. While the regime has mostly attracted startups due to its restrictions, German institutions remain highly active in the ECB's DLT settlement trials, with the Bundesbank increasing its DLT activities by hiring more staff.