Deutsche Börse's Clearstream Launches D7 DLT Tokenization Platform
Deutsche Börse's Clearstream introduced its D7 platform four years ago. The initial version, called D7 Digital, was centralized and has already been used for issuances totaling €44 billion, mainly on digital bonds and structured products.
Now, Clearstream has launched D7 DLT, a new tokenization solution that operates on distributed ledger technology (DLT). Unlike the original, D7 DLT supports compliance with the Central Securities Depositories Regulation (CSDR), leveraging Clearstream's role as a central securities depository.
This integration allows issuances on D7 DLT to be accessible to investors who are still unfamiliar with DLT. For users adopting DLT, the platform also connects with 360X, a licensed DLT venue partially owned by Deutsche Börse.
Initial Rollout and Market Focus
The D7 DLT solution is first launching in Luxembourg through Clearstream Banking SA. Eurobonds are a primary focus of this rollout.
Clearstream recently partnered with Euroclear to establish a unified data standard, laying the groundwork for tokenizing the €14 trillion Eurobond market.
Notable Clients and Future Prospects
The European Investment Bank (EIB), a Clearstream client, has already issued bonds on many major digital issuance platforms across Europe.
“It’s highly likely there will be a D7 DLT EIB issuance in the not-too-distant future.”
This signals strong potential for growth and adoption of the platform for large-scale digital bond issuances.
Summary
Clearstream's new D7 DLT platform advances tokenization with regulatory compliance, leveraging DLT to ease investor access and connect with major market infrastructures.
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