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The Bank for International Settlements (BIS) Innovation Hub, Bank of France and Swiss National Bank launched Project Jura that, together with a private sector consortium led by Accenture, will conduct an experiment using wholesale central bank digital currency (wCBDC) for cross-border settlement on a distributed ledger technology (DLT) platform. The private sector consortium includes Credit Suisse, Natixis, R3, SIX Digital Exchange and UBS. It will involve the exchange of financial instruments against a euro wCBDC through a delivery versus payment (DvP) settlement mechanism and the exchange of a euro wCBDC against a Swiss franc wCBDC through a payment versus payment (PvP) settlement mechanism. These transactions will be settled between banks domiciled in France and in Switzerland, respectively.

In April the South African Reserve Bank (SARB) announced the results of the second phase of its Project Khoka 2 (PK2) wholesale central bank digital currency (CBDC) trial, Project Khokha 2, which commenced in February 2021. PK2 explored the impact of distributed ledger technology (DLT) on trading, clearing and settlement by issuing a SARB debenture on a DLT network and enabling two DLT-based payment options in the form of a wholesale CBDC (wCBDC) token and a wholesale digital settlement token (wToken). There was one network where the wCBDC was issued and a second one - the Khokha Hub, where the wToken and tokenized bond were issued and traded. A bridge was used to port the wCBDC to the second network to settle the primary bond issuance transaction.

The BIS published a report on the key insights and lessons learnt from its Innovation Hub's 12 central bank digital currency (CBDC) projects. For domestic use cases, two projects investigate wholesale CBDC (wCBDC) and five look at retail CBDC (rCBDC). Across borders, four experiments look at wCBDC and one looks at rCBDC. For each category, the report discusses key insights and lessons learnt from the perspectives of desirability, feasibility and viability. The report also contains tables and an annex that give details of the projects I haven't seen before.

The Bank for International Settlements (BIS) published the results of its Project Mariana proof of concept that demonstrated technical feasibility of automated market-makers (AMMs) for cross-border trading and settlement of wholesale central bank digital currencies (wCBDCs). It borrows ideas and concepts from decentralized finance (DeFi) and leverages a public blockchain to design and test a transnational transnational FX interbank market using wCBDCs. Project Mariana is a collaboration between the BIS Innovation Hub, the Bank of France, the Monetary Authority of Singapore and the Swiss National Bank.

SUERF published a paper that suggests that central banks and policymakers start with trigger solutions when considering wCBDC. Trigger solutions connect the distributed ledger technology (DLT) world with conventional settlement systems and enable the settlement of tokenised assets in central bank money. By connecting DLT networks with conventional payment systems, they combine the advantages of decentralised infrastructures with the reliability of the central bank. No new form of (tokenised) money needs to be introduced. The trigger solution can play a neutral role and is agnostic across three dimensions: use cases, payment systems and asset systems. Furthermore, trigger solutions are characterised by comparatively low technical and operational complexity, and are a convenient way to test the case for wCBDC and observe market adaptation.

The Saudi Central Bank (SAMA) and the Central Bank of the United Arab Emirates (CBUAE) published the results of their joint "Aber" wholesale central bank digital currency (wCBDC) pilot project. The wCBDC was issued by SAMA and the CBUAE, and used only by them and participating banks, as a settlement unit for domestic and cross-border commercial bank transactions between Saudi Arabia and the UAE. The final results of the pilot project were consistent with the results of similar pilots conducted by a number of central banks.

The European Central Bank (ECB) "new technologies for wholesale settlements contact group" held its first meeting on June 21, 2023, marking the start of the Eurosystem's exploratory work on how wholesale financial transactions recorded on distributed ledger technology (DLT) platforms could be settled in central bank money. Exploratory work is expected to begin in 2024 with trials or experiments to launch later in 2024. Initially, three types of interoperability solutions will be explored; the Deutsche Bundesbank's trigger, Banca d'Italia's TIPS Hash-Link, and the Banque de France's wholesale central bank digital currency (WCBDC) based full-DLT interoperability solutions.

The European Central Bank (ECB) published the learning strategy and key performance indicators (KPIs) proposed for its exporatory work on new technologies for central bank money settlement of wholesale financial transactions. The work is focused on three interoperability-type solutions, (i) trigger (ii) TARGET Instant Payment System (TIPS) hash link, and (iii) full distributed ledger technology (DLT) interoperability. The first two solutions involve the market platform interoperating with the existing TIPs platform. Only the last one (full-DLT) involves what the rest of the world calls wholesale central bank digital currency (wCBDC), in which the payment instrument is DLT-based central bank money (CeBM).

The Swiss National Bank (SNB) will technically be ready to launch a wholesale central bank digital currency (CBDC) in January 2022, using Switzerland's Six Digital Exchange (SDX). However, a policy decision has yet to be taken, and there is the question of whether the SNB can legally issue wholesale CBDC. Also, Thomas Moser, a member of the SNB's governing board, says there are no plans for going live at this point in time.

"Jura explores the direct transfer of euro and Swiss franc wholesale central bank digital currencies (wCBDCs) between French and Swiss commercial banks on a single DLT platform operated by a third party. Tokenised asset and foreign exchange trades are settled safely and efficiently using payment versus payment (PvP) and delivery versus payment (DvP) mechanisms. The experiment is conducted in a near-real setting, using real-value transactions and complying with current regulatory requirements."

In this March 31 speech, the Bank of England's Victoria Cleland introduces Project Meridian, a joint initiative with the BIS Innovation Hub that will prototype and test end-to-end flow of real-time gross settlement (RTGS) platform synchronized settlement, which could be used for different trades such as securities and foreign exchange. Synchronization would enable the cash movements in RTGS to happen if and only if a corresponding asset on another ledger is transferred, which is something that wholesale central bank digital currency (WCBDC) aficionados imply requires a distributed ledger technology (DLT) platform. Ms. Cleland makes a point that I make frequently in webinars and workshops:  "I do wonder though whether the term "wholesale CBDC" is a misnomer. Electronic central bank money has been available to financial institutions for decades via RTGS systems. In the provision of central bank infrastructure the key is not the label, but who can access it and what functionality is provided."

The Hong Kong Monetary Authority (HKMA) has established the Project Ensemble Architecture Community to work with the industry to shape standards and provide suggestions to support the development of Hong Kong's tokenization market. The Community aims to develop a set of industry standards to support interoperability among wholesale central bank digital currency (WCBDC), tokenized money and tokenised assets. The Community will also assist in the design and implementation of a sandbox to launch by around mid-2024.

The Hong Kong Monetary Authority (HKMA) launched Project Ensemble to test using wholesale central bank digital currency (CBDC) to settle tokenized assets with bank deposits. Use cases will include settling tokenized green bonds, carbon credits, aircraft instruments, electric vehicle charging stations, and electronic bills of lading. To help set industry standards, the HKMA will form a "wCBDC Architecture Community" consisting of local and multinational banks, key digital asset industry players, and technology companies. https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/03/20240307-5/

The Swiss National Bank (SNB) will continue its Project Helvetia pilot focusing on tokenized securities settlement on SIX Digital Exchange (SDX) in Swiss franc wholesale central bank digital currency (CBDC) for at least two more years. This will come after the successful completion of Project Helvetia III, which will run until the end of June 2024. This included the SNB becoming the world's first central bank to carry out a monetary policy operation in a live production environment using distributed ledger technology (DLT) when it issued CHF 64 billion in SNB one-week bills on the SDX platform in early June. The next stage of the pilot aims at expanding the scope with the intention to gradually include additional financial institutions and to serve a broader range of financial market transactions. https://www.snb.ch/en/publications/communication/speeches-restricted/pre_20240620_tjnmslanmar

The Bank for International Settlements, the Swiss National Bank and SIX successfully tested the integration of wholesale central bank digital currency (CBDC) settlement with the core banking systems of five commercial banks. The experiment explored the settlement of interbank, monetary policy and cross-border transactions on the test systems of SIX Digital Exchange, SIX Interbank Clearing (the Swiss real-time gross settlement system) and the core banking systems of Citi, Credit Suisse, Goldman Sachs, Hypothekarbank Lenzburg and UBS. The test was part of Project Helvetia, an ongoing investigation into the settlement of tokenised assets with wholesale CBDC.

The Banque de France (BdF) published an updated set of conclusions and lessons learned from its twelve distributed ledger technology (DLT) based wholesale central bank digital currency (CBDC) experiments. They show the operational feasibility and practical implementation of the three models it has conceptualized for issuing DLT-based wholesale CBDC; the interoperability, distribution and integration models. They all address key aspects of wholesale CBDC implementation and each model offers different capabilities and functionalities compared to the conventional systems, so they can be complementary rather than exclusive.

Banco de España (BDE) has chosen two Spanish banks (Cecabank and Abanca) to participate in distributed ledger technology (DLT) based wholesale central bank digital currency (CBDC) tests. The proofs of concept will feature the testing of the processing and settlement of domestic and cross-border interbank payments, and simulating tokenized bond settlements. The BDE has previously noted that this DLT-based wholesale CBDC work is independent of the digital euro project that would cover the eurozone if implemented. Adhara Blockchain will be providing technical services. https://www.boe.es/boe/dias/2024/01/03/pdfs/BOE-A-2024-205.pdf https://www.boe.es/boe/dias/2024/01/03/pdfs/BOE-A-2024-206.pdf

The World Economic Forum (WEF) published a report that explores the potential of wholesale central bank digital currency (CBDC) to unlock new economic models and integration points. Four areas of differentiated value for are highlighted. First they can realize a global settlement window by harmonizing foreign exchange (FX) and securities markets settlement times to overcome operational hour disparities among key trading corridors. Second, they can expand payment-versus-payment arrangements through cost-effective solutions that can support a diversity of currencies to enhance currency liquidity. Third, they can mutualize data across parties by securely transmitting settlement data across parties and jurisdictions to support automation, reduce settlement risk, and enhance trade and post-trade activities. Lastly, they tokenize credit risk-free settlement media for settling tokenized securities and supporting emerging tokenized payment instruments.

The Banque de France (BdF) and the Hong Kong Monetary Authority (HKMA) have launched a collaboration relating to wholesale central bank digital currency (CBDC). They will delve into the study of interoperability between their wholesale CBDC infrastructure, i.e. the BDF's DL3S and the HKMA's Project Ensemble Sandbox, with the main focus on real-time cross-border and cross-currency payments. The cross-border experiment aims to explore how to optimize settlement efficiency of cross-border transactions, and facilitate interoperability between financial market infrastructures in different jurisdictions.

The Bank for International Settlements (BIS) will collaborate with several central banks to explore how instant cross-border payments could be improved using a modular foreign exchange component combined with settlement in wholesale central bank digital currencies (CBDCs). Project Rialto will explore a new automatic FX settlement layer using wholesale CBDC as a safe settlement asset that could be deployed for interlinked instant payment systems or digital asset systems. Project Rialto is named after the famous bridge in Venice which connects two sides of the Grand Canal.