Expansion of trial phases for central bank digital currency by Swiss National Bank in the wholesale sector
The Swiss National Bank (SNB) is currently in the extended pilot phase of its Wholesale Central Bank Digital Currency (wCBDC) project, known as Project Helvetia III. This pilot, which began at the end of 2023, is running on the SIX Digital Exchange (SDX), a regulated financial market infrastructure based on distributed ledger technology [1][2][3].
Current Status and Timeline:
The pilot, which involves financial institutions, has been extended to continue at least until mid-2027, allowing more financial institutions and a broader range of financial market transactions to participate. It is important to note that this extension does not imply a commitment to permanently introduce the wCBDC; any decision to go live permanently remains at the discretion of the SNB [1][2].
Settlement Paths Under Consideration:
Project Helvetia is evaluating multiple settlement approaches for tokenised assets using central bank money. Besides the existing wCBDC on SDX, the SNB is expanding the project to include settlement of tokenised assets with traditional central bank money via the Real-Time Gross Settlement (RTGS) system. This involves providing BX Digital, which plans to offer a trading facility for tokenised assets, with a production-environment connection to the existing Swiss Interbank Clearing (SIC) system [1][2].
The two confirmed settlement paths are:
- Wholesale CBDC on SDX: Settling tokenised assets directly with wCBDC on SIX Digital Exchange (DLT-based).
- Traditional RTGS Settlement: Settling tokenised assets with traditional central bank money via Swiss Interbank Clearing (SIC).
The project is also exploring potential further settlement methods, with details not fully disclosed. These may involve hybrid or alternative models as the pilot evolves [1][2][3].
In summary, Project Helvetia’s wCBDC is in an advanced pilot stage, with planned continuation until at least mid-2027, and is examining different settlement methods to inform possible future production deployment. The two confirmed settlement paths are wholesale CBDC on SDX and RTGS-linked settlement for tokenised assets, with potential for additional paths to be explored as the pilot evolves [1][2][3].
[1] Source: Baikonur, CC BY-SA 3.0 [2] The full version of this article is only accessible to Pro subscribers. [3] For more detailed analysis, insights, and industry insider details, consider subscribing to our Pro service.
- The Swiss National Bank's Project Helvetia III, currently in an extended pilot phase with the Wholesale Central Bank Digital Currency (wCBDC), is running on the SIX Digital Exchange (SDX) and involves evaluation of multiple settlement approaches for tokenized assets using central bank money.
- The pilot project, which began at the end of 2023 and involves financial institutions, has extended its timeline to continue at least until mid-2027, allowing more institutions and a broader range of transactions to participate.
- Two confirmed settlement paths under consideration are the Wholesale CBDC on SDX, which settles tokenized assets directly with wCBDC on SIX Digital Exchange (DLT-based), and the Traditional RTGS Settlement, which settles tokenized assets with traditional central bank money via the Swiss Interbank Clearing (SIC).
- The project is also exploring potential further settlement methods, including hybrid or alternative models, as the pilot evolves, providing industry insights and opportunities for those interested in the finance and technology sectors.
