Axiology’s DLT Platform Proves Operational Viability in Eurosystem Bond Settlement Trials
- Julija Mačiulskė
- 3 days ago
- 2 min read
Today the European Central Bank has published its report on the Eurosystem’s DLT experimentation, which included Axiology as one of the infrastructure providers selected to contribute to practical use case testing.
Importantly, the ECB also announced that it will enable the settlement of DLT-based transactions in central bank money through a new dual-track strategy. This commitment, outlined in the Eurosystem’s Pontes (short-term) and Appia (long-term) initiatives, marks a turning point for Europe’s digital financial infrastructure. It paves the way for connecting regulated DLT platforms like Axiology’s with TARGET Services, the Eurosystem’s payment backbone.
This milestone will allow Axiology to offer institutional-grade central bank money settlement options to its clients, as these capabilities move from experimentation to production.
Axiology took part in the Eurosystem’s experimentation phase last year, successfully testing the primary distribution, coupon payments and redemption of various bonds (such as government debt securities) using the Bundesbank’s Trigger Solution. All transactions were conducted on the Axiology DLT TSS platform and settled in central bank money.
The trial tested the integration of Axiology’s DLT infrastructure with Eurosystem processes and explored the operational viability of synchronised Delivery Versus Payment (DVP) in wholesale central bank digital currency (wCBDC).
Capital markets infrastructure provider Axiology was one of only two entities operating under the EU’s DLT Pilot Regime Regulation, which were selected to participate in the Eurosystem’s experimentation. The focus was on Axiology’s blockchain-based trading and settlement system, which was used for the simulated settlement of primary distribution, coupon payments and maturity redemption of bonds. The Bundesbank’s Trigger Solution was used for the cash settlement of the transactions.
The experiments confirmed that Axiology’s system can process and settle government bond transactions with the security, efficiency and interoperability needed for institutional-grade infrastructure. The Bank of Lithuania, a central bank, also played a role by providing the test accounts on the T2 UTEST (the test environment of the Eurosystem’s payment system TARGET) for the Axiology experiment.
