Euroclear launches D-SI, a DLT-powered financial market infrastructure

Rick Steves

The successful launch of the D-FMI program is a major step. It boosts the industry’s confidence in decentralized financial futures. This is integral to Euroclear’s strategy to advance digital infrastructure in financial markets.

Euroclear has announced the launch of Digital Securities Issuance (D-SI), a digital financial market infrastructure that uses distributed ledger technology (DLT).

The launch was announced in partnership with Capgemini, whose role was crucial. They were the lead system integrator for the D-FMI program. Their services included consulting, design, implementation, and testing.

Capgemini also played a key role in integrating the new platform with Euroclear’s existing systems.

D-SI for issuance, distribution, and settlement of Digitally Native Notes (DNN)

Digital Securities Issuance (D-SI), uses distributed ledger technology (DLT) and enables the issuance, distribution, and settlement of Digitally Native Notes (DNN).

The D-SI service is a significant part of Euroclear’s Digital Financial Market Infrastructure (D-FMI) strategy. This service represents a shift in the capital markets towards digitalization.

The successful launch of the D-FMI program is a major step. It boosts the industry’s confidence in decentralized financial futures. This is integral to Euroclear’s strategy to advance digital infrastructure in financial markets.

Bridging the gap between decentralized and regulated finance

Antonio Queiroz, Euroclear’s Chief Digital Officer, emphasized the D-FMI’s role. It aims to bring safety, efficiency, and connectivity to financial markets. The launch is a foundational step towards creating a secure and efficient platform. “Our D-FMI strategy stands as one of the key pillars of our group strategy which starts from our purpose to bring safety, efficiency, and connections to financial markets for sustainable growth. With this launch, we laid the foundation to successfully create a robust and secure platform that will streamline processes, increase transparency, and provide real-time access to critical financial data.”

Pierre-Olivier Bouée, Head of Financial Services for Continental Europe at Capgemini, highlighted the partnership’s goal to revolutionize traditional financial market infrastructure. “We are proud to partner with Euroclear to revolutionize the traditional financial market infrastructure through the D-FMI program. This launch is an important milestone in our long-standing partnership with Euroclear to bridge the gap between decentralized and regulated finance,” said Pierre-Olivier Bouée, Head of Financial Services for Continental Europe at Capgemini. “Our efforts illustrate a commitment to transform the conventional digital asset value chain into an open and shared platform powered by distributed ledger technologies and new operating models.”

World Bank issued €100m DNN using Euroclear’s D-SI

It was last month that the Luxembourg Stock Exchange (LuxSE) announced the listing of the European Union’s first financial instrument issued on Distributed Ledger Technology (DLT).

The EUR 100 million Digital Native Note (DNN) by the World Bank was issued using Euroclear’s new Digital Securities Issuance (D-SI) service, a component of Euroclear’s Digital Financial Market Infrastructure (D-FMI).

The D-FMI is a DLT-based platform that integrates with Euroclear’s existing securities settlement system, providing a seamless transition for investors trading digitally native securities.

This marked a significant stride towards achieving the goals set out in the European Commission’s Digital Finance Strategy, introduced in September 2020.

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