Euroclear partners with French central bank to tokenize short-term bond market

Euroclear, the world's largest International Central Securities Depository (ICSD), plans to tokenize Europe's largest market for short-term commercial paper (NEU CP) using distributed ledger technology (DLT), the company said in an interview with Cointelegraph. The initiative is being pursued in collaboration with the Banque de France, the country's central bank. Jørgen Ouaknine, head of digital assets at Euroclear, stated that the firm does not distinguish between DeFi and TradFi (traditional finance). He explained that while assets and cash are on different rails, the company must meet all of its clients' financial needs. Ouaknine noted that while Europe utilizes CBDCs, the development of stablecoins in the U.S. also has its advantages, and the tokenization process will not be limited to a specific chain. He emphasized that tokenization has now moved beyond the experimental stage and into the infrastructure-building phase.