Banque de France and Euroclear Launch DLT-Based Short-Term Debt Tokenization Project
Banque de France and Euroclear have unveiled 'Pythagore,' a joint initiative to tokenize Negotiable European Commercial Paper (NEU CP) using Distributed Ledger Technology. The €310 billion NEU CP market, the euro area's largest short-term debt platform, offers issuers competitive financing and liquidity management advantages.
The project targets operational efficiencies, enhanced transparency, and security for market participants. A pilot phase is set for late 2026, coinciding with the Eurosystem's 'Pontes' wholesale CBDC initiative. Euroclear's DLT platform will prioritize interoperability with TARGET services.
This collaboration follows their November 2024 breakthrough in issuing France's first digitally native note. 'Euroclear's DEEP roots in France's financial ecosystem position us to lead this transformation,' a spokesperson noted, underscoring the strategic push toward digitizing wholesale finance.
