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Advancing towards CBDC Implementation with Helvetia Phase III Program
The Swiss National Bank(SNB), together with SIX Digital Exchange and chaired by Thomas Jordan, are making strides with the notable Helvetia Phase III pilot project. This significant step marks a move from mere experimentation to real-world implementation of a central bank digital currency (CBDC). This initiative paves the way for actual bond transactions to be settled via digital money using a platform based on distributed ledger technology (DLT).
Future Blockchain-based Bond Transactions
Between December 2023 and June 2024, the pilot program will be facilitated by six banks, namely Banque Cantonale Vaudoise, Basler Kantonalbank, Commerzbank (ETR:CBKG), Hypothekarbank Lenzburg, UBS, and Zürcher Kantonalbank. These institutions will serve both issuers and investors through these bond transactions. The bond assets will be tokenized, and settlements against wholesale CBDC will be carried out on a delivery-versus-payment basis via SDX—a regulated DLT-based platform hosting the pilot.
Tokenized Assets and Real Wholesale CBDC
Building on the insights generated by Project Helvetia, a collaboration between BIS Innovation Hub, SNB, and SIX, this novel project has its sights set on securely and efficiently settling transactions involving tokenized assets. This will be facilitated through real wholesale CBDC on a regularly monitored DLT platform. The SIC and SIX SIS systems will be employed for tokenizing central bank money and for integrating with conventional bond settlement infrastructure, respectively.
New Avenues: Trading and Settlement of Repo Transactions
Beyond bond transactions, the trial will also venture into the territory of trading and settlement of repo transactions. These will be facilitated with wholesale CBDC on the CO:RE trading platform and be backed by digital bonds that are eligible for SNB repo transactions. Settlements will be carried out on SDX, leveraging wCBDC and managed by the Triparty Agent of SIX SIS.
SIX CEO, Jos Dijsselhof, applauded this pilot, terming it as a trailblazing leap in the operation of tokenized central bank money.
