The Commercial Bank Money Token (CBMT) Working Group announced the launch of the CBMT Sandbox, a test environment for banks and enterprises to pilot CBMT in institutional and corporate use cases.
A launch session will be held on November 19 in Frankfurt. As part of the next phase, Giesecke+Devrient (G+D), GFT Technologies and the Universal Digital Payments Network (UDPN) will serve as the Technical Service Providers (TSPs), enabling onboarding, integration, and interoperability of banking and business systems via distributed-ledger stacks.
Oracle is joining the initiative as the blockchain ledger and infrastructure provider for the CBMT Sandbox.
The CBMT initiative includes German banks and industrial companies.
During the past year, the project group carried out a proof-of-concept (PoC) centered on interoperability, programmability, governance, and compliance.
The results identified CBMT as a “transformative force” that enables on-chain payments using deposits, delivers efficiencies, and paves the way for various new financial products.
Claus George, Head of Digitalization and Innovation TxB at DZ BANK AG, said that it was quite valuable that their customers were involved in the development of CBMT.
CBMT combines the positive characteristics of commercial bank money with the innovative “potential of DLTs, while also being compatible with the emerging infrastructures we see here.”
Commercial Bank Money Token represents a step towards a digitalized financial system by “placing commercial bank money” onto distributed ledger technology.
This allow for the execution of money flows and business processes within the same systems, tapping into different use cases across local and cross-border environments.
As the next key milestone, the working group will introduce the CBMT Sandbox, enabling participants to explore the lifecycle and logic of tokenized money flows, from issuance to enterprise payments and interbank settlements, while also actively “testing real-world applications in a controlled environment.”
The goal is to build a multi-issuer, multi-currency, multi-chain CBMT ecosystem. G+D, GFT, and UDPN will offer technical expertise throughout the process, ensuring easier deployment, structured onboarding, and validation of use cases.
Commercial bank money equals around 85 percent of the money supply in Europe currently.
With the CBMT Sandbox, the working group is creating the foundations for a financial infrastructure where commercial bank money operates “natively on digital rails.”
As a means of payments, a settlement instrument, and a liquidity management tool, CBMT provides a framework for wholesale and commercial applications.
The CBMT working group is opening the Sandbox and welcoming participation from commercial banks and industrial enterprises across Europe and internationally, to take part in the Sandbox, enabling the journey from the initial exploration phase to engaging pilots to eventual production deployment.
