The Swiss National Bank Advances with Phase III of Helvetia CBDC Pilot Program
Swiss National Bank (SNB) Progresses with Helvetia Phase III Pilot Program
The Swiss National Bank (SNB) is taking significant strides in its Helvetia Phase III pilot program, moving from testing to the actual implementation of a central bank digital currency (CBDC). This groundbreaking initiative, led by SNB Chairman Thomas Jordan and SIX Digital Exchange, will revolutionize bond transactions by utilizing distributed ledger technology (DLT) and enabling settlements with digital currency.
Six Banks to Facilitate Tokenized Bond Transactions
From December 2023 to June 2024, six prominent banks, including Banque Cantonale Vaudoise, Basler Kantonalbank, Commerzbank, Hypothekarbank Lenzburg, UBS, and Zürcher Kantonalbank, will facilitate tokenized bond transactions for issuers and investors. These transactions will be settled using a wholesale CBDC on a delivery-versus-payment basis, leveraging the regulated DLT-based infrastructure of SDX.
Building on the Success of Project Helvetia
This innovative pilot project builds on the findings of Project Helvetia by BIS Innovation Hub, SNB, and SIX. It aims to securely and efficiently settle transactions with tokenized assets using real wholesale CBDC on a regulated DLT platform. The tokenization of central bank money will occur through the SIC infrastructure, while integration with traditional bond settlement infrastructure will be facilitated by SIX SIS.
Exploring Trading and Settlement of Repo Transactions
In addition to bond transactions, the pilot program will explore the trading and settlement of repo transactions using wholesale CBDC on the CO:RE trading platform. These transactions, collateralized by digital bonds eligible for SNB repo transactions, will be settled on SDX in wholesale CBDC, managed by the Triparty Agent of SIX SIS.
Pioneering Leap in Tokenized Central Bank Money Operation
Jos Dijsselhof, CEO of SIX, has hailed this pilot program as a pioneering leap in tokenized central bank money operation. The program’s successful implementation will mark a significant milestone in the evolution of digital currency and its integration into the traditional financial system.
With the Swiss National Bank’s Helvetia Phase III pilot program, the future of digital currency looks promising. By leveraging DLT and wholesale CBDC, this initiative aims to revolutionize bond transactions and pave the way for a more efficient and secure financial system.
