The Czech National Bank has completed pilot tests of distributed-ledger technology (DLT) for bond settlement, announcing results on November 10. The tests, conducted in October and November, included bond transfers, purchases, sales against payment, and repo transactions on Prague's Central Securities Depository infrastructure.
CNB Governor Aleš Michl stated a preference for central bank money to anchor tokenized securities settlement rather than private stablecoins. According to the bank, settlement was nearly instantaneous, though transaction volume remained modest at tens of thousands of koruna.
Commercial bank Česká spořitelna participated as counterparty in the tests. Each bond carried a nominal value of 10,000 Czech koruna, and interest payments were also tested. Only approved financial institutions can access the network, with transaction records visible only to counterparties.
Michl's broader goal is developing a larger market for koruna-denominated assets that are easier to trade than foreign securities. A November 5 presentation by CNB payments-regulation director Michal Vodrážka indicated that settlement in CNB money on DLT was not yet available, leaving the exact cash instrument used in the bond tests undisclosed.
The CNB's approach aligns with the Eurosystem's Pontes platform, launched in September to enable wholesale tokenized asset transactions to settle in central bank money. If eligible institutions can access central bank settlement infrastructure for tokenized securities transactions, demand for stablecoin balances used for settlement may be reduced.
The Czech network currently restricts institutional access, while Pontes is expanding services in stages. The ECB has announced plans for significantly longer operating hours by mid-2027 and 24/7/365 availability by 2028.
