Axiology has successfully completed the testing of the primary distribution, coupon payments and redemption of various bonds – such as government debt securities –using the Bundesbank’s Trigger Solution. The exercise was part of a series of experiments by the Eurosystem of using distributed ledger technology (DLT) for central bank money settlements.
Lithuanian-based capital markets infrastructure provider Axiology was one of only two entities operating under to EU’s DLT Pilot Regime Regulation, which were selected to participate in the Eurosystem’s experimentation. The focus was on Axiology’s blockchain-based trading and settlement system, which was used for the simulated settlement of primary distribution, coupon payments and maturity redemption of bonds. The Bundesbank’s Trigger Solution was used for the cash settlement of the transactions.
"This experiment has confirmed what we’ve long believed: Axiology’s system is fully equipped to manage the entire lifecycle of bonds, with the speed and reliability that modern markets demand," says Marius Jurgilas, CEO and co-founder of Axiology. "For DLT to truly transform capital markets, it’s not just about innovation – it’s about integrating seamlessly with existing infrastructures. We’re thrilled with the results of this exercise."
The central bank of Lithuania, Lietuvos bankas, also played a role by provided the test accounts on the T2 UTEST (the test environment of the Eurosystem’s payment system TARGET) for the Axiology experiment.
Axiology will use the experience gained to inform the further development of the Axiology trading and settlement system. In the near future, Axiology plans to use euro-denominated e-money token as a settlement asset – with a view to moving to settlement using central bank money once it becomes available for DLT market operators in non-experimental settings.
About Axiology:
Axiology is a Lithuanian capital markets infrastructure provider that has developed a distributed ledger technology (DLT) platform for securities trading and settlement. This platform facilitates the issuance, trading, and settlement of various tokenised securities. One of the companies using this platform, a subsidiary of Axiology, is currently in the process of obtaining a licence to leverage DLT solutions under the provisions of the EU DLT Pilot Regime.