Authors - Davide Paglia, Lorenzo Rigatti, Andrea Sabatini, Fabrizio Venettoni Abstract - In the context of the new emerging trend in capital markets of tokenization of financial assets, the paper explains how financial security can be registered on a market blockchain settled in ECB central bank digital currency, in T+0 time and in compliance with the current European regulatory framework. A particular use case is explored through the design, implementation and use of a new market infrastructure DLT based, an enterprise application called DLT Bond Platform for the issuance of a digital bond settled in European Central Bank wholesale digital currency via a delivery versus payment process, using a layer 2 permissionless blockchain. After introducing the context and the problem statement in the first two sections, a general description of the solution proposed, and its novel contributions are provided in the third section. In the forth section the main components of the DLT Bond Platform are described in detail, both web2 and web3 as well as the related business processes, namely: (i) Management of the entire life cycle of a bond in digital form; (ii) Management of all the settlement phases envisaged by the bond also through atomic transactions for the simultaneous transfer of the securities and the corresponding cash flows (delivery versus payment or "DvP") through the use of the solution made available by the Bank of Italy as part of the European Central Bank initiative called New Technologies for Wholesale Settlement (iii) Identification, authorization and management of users, profiles and the respective roles on chain; (iv) real-time monitoring and audit trail. The final section focuses on the results obtained and on the completion of the validation process, ultimately dwelling on potential future developments.
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