Euroclear has unveiled its Digital Securities Issuance (D-SI) platform, a digital financial market infrastructure powered by distributed ledger technology (DLT). This milestone was achieved through a strategic partnership with Capgemini, where the latter served as the lead system integrator for the D-FMI program, providing essential services in consulting, design, implementation, and testing.
Integration of Distributed Ledger Technology
D-SI utilizes DLT to facilitate the issuance, distribution, and settlement of Digitally Native Notes (DNN). This marks a significant shift in the capital markets towards digitalization, aligning with Euroclear’s broader Digital Financial Market Infrastructure (D-FMI) strategy.
Capgemini’s Integral Role in the Launch
Capgemini played a crucial role in integrating the new platform with Euroclear’s existing systems, demonstrating a commitment to revolutionizing traditional financial market infrastructure. The success of the D-FMI program launch is a substantial leap forward, instilling confidence in decentralized financial futures and contributing to Euroclear’s mission to advance digital infrastructure in financial markets.
Antonio Queiroz, Euroclear’s Chief Digital Officer, emphasized the D-FMI’s objectives, stating that it aims to bring safety, efficiency, and connectivity to financial markets. The launch of D-SI is a foundational step towards establishing a robust and secure platform, streamlining processes, increasing transparency, and providing real-time access to critical financial data.
Capgemini’s Perspective on Transformative Partnerships
Pierre-Olivier Bouée, Head of Financial Services for Continental Europe at Capgemini, highlighted the partnership’s goal to revolutionize traditional financial market infrastructure. He expressed pride in collaborating with Euroclear on the D-FMI program, deeming the launch a crucial milestone in their long-standing partnership. According to Bouée, these efforts signify a commitment to transforming the conventional digital asset value chain into an open and shared platform powered by distributed ledger technologies and new operating models.
Luxembourg Stock Exchange’s Role in the Evolution
The Luxembourg Stock Exchange (LuxSE) made a significant announcement last month, listing the European Union’s first financial instrument issued on Distributed Ledger Technology (DLT). The EUR 100 million Digital Native Note (DNN) by the World Bank was issued using Euroclear’s D-SI service, a component of the broader D-FMI.
Aligning with European Commission’s Digital Finance Strategy
This development aligns with the goals outlined in the European Commission’s Digital Finance Strategy, introduced in September 2020. The D-FMI, as a DLT-based platform integrated with Euroclear’s existing securities settlement system, offers a seamless transition for investors engaging in the trading of digitally native securities.
Euroclear’s foray into digital financial market infrastructure, in collaboration with Capgemini, signifies a transformative step forward, ushering in a new era of efficiency, transparency, and connectivity in the financial markets.