DLT WG Issues “Blueprint for CBDC in Post-Trade Settlement”

The ISSA DLT Working Group (WG) has built on their prior publications and has undertaken an analysis of the potential CBDC (Central Bank Digital Currencies) implications on securities services. To quote from the report’s foreword:

“CBDC and stablecoins (SC) are being investigated, experimented with and, in some cases, already in use within the capital markets. The adoption of CBDC and SC offers potential advantages over today’s settlement methods. This is particularly apt when discussing the settlement of securities on DLT, as the simultaneous exchange of CBDC/SC and securities tokens (aka atomic settlement) is a key attribute of a DLT solution and the creation of a Delivery versus Payment 1 (DvP1) (in central bank money or commercial bank money) settlement solution…It is therefore of paramount importance that the securities sector within the financial services industry gains as complete a picture as possible…”

ISSA and the WG are happy to help the industry in gaining “as complete a picture as possible” and hope that our members agree that this paper helps to do that. ISSA would like to thank the DLT WG for their insights and contributions.