Deutsche Börse’s subsidiary, Clearstream, has achieved a significant milestone by surpassing €10 billion in digital securities issuance through its D7 platform. The platform has played a pivotal role in facilitating the issuance of various types of digital securities, particularly large digital bonds and structured products.

One notable example is the issuance of digital bonds by the state-owned KfW, with transactions totaling billions of euros. From a €20 million bond in 2022 to a recent €3 billion issuance over seven years, Clearstream has been instrumental in supporting these transactions. Additionally, Clearstream has facilitated the issuance of around 15,000 structured products per month, amounting to a cumulative figure of approximately 250,000 products.

While some may argue that these securities are not strictly blockchain-based due to the centralized registry system used by D7, it is important to note that the platform leverages DAML smart contracts, incorporating elements of blockchain technology. The focus here lies in the efficiency and automation enabled by smart contracts, rather than the specific ledger structure.

The European Central Bank (ECB) has recognized the potential for efficiency gains in the settlement of digital securities and has initiated DLT wholesale settlement trials. Clearstream’s D7 platform was involved in several trials, including a simulation of intraday repo transactions and the issuance of commercial papers. These trials have provided valuable insights and paved the way for a more streamlined digital financial ecosystem in Europe.

Looking ahead, there are promising prospects for further advancements in digital securities issuance and settlement processes. Clearstream’s successful participation in the ECB trials underscores the importance of continuous innovation and collaboration in driving the evolution of digital asset markets. As the industry continues to embrace digital transformation, Deutsche Börse’s Clearstream remains at the forefront of facilitating seamless and efficient digital securities transactions.