The Commercial Bank Money Token (CBMT) Working Group has launched the CBMT Sandbox, a test environment for banks and enterprises to pilot CBMT in institutional and corporate use cases.
A launch event is scheduled for 19 November in Frankfurt.
Giesecke+Devrient (G+D), GFT Technologies, and the Universal Digital Payments Network (UDPN) will serve as Technical Service Providers, supporting onboarding, integration, and interoperability across multiple distributed-ledger systems.
Oracle will provide the blockchain ledger and infrastructure for the Sandbox.
The CBMT initiative brings together major German banks and industrial firms.
In 2024, a proof-of-concept explored interoperability, secure programmability, governance, and regulatory compliance, identifying CBMT as a tool to enable on-chain payments using existing deposits and supporting innovative financial products.
“It was extremely valuable that our customers were actively involved in the development of CBMT. As a result, 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 today,”
said Claus George, Head of Digitalisation and Innovation TxB at DZ BANK.
CBMT places commercial bank money onto distributed ledger technology (DLT), allowing seamless execution of money flows and business processes within the same systems.
“Stablecoins carry new economic and operational risks that continue to deter corporate adoption. CBMT, by contrast, delivers a programmable form of settlement to the digital economy that preserves the singleness of money and is aligned to the same prudential standards governing bank deposits today,”
noted Roberto Pagliari, Senior Product Owner – DLT Cash and Markets at Commerzbank.
The Sandbox allows participants to explore tokenised money flows from issuance to enterprise payments and interbank settlements in a controlled environment, with the aim of building a multi-issuer, multi-currency, multi-chain CBMT ecosystem.
“At G+D, we see the CBMT initiative as a foundational step toward a secure, efficient and interoperable tokenised financial ecosystem. The CBMT Sandbox enables banks and enterprises to explore real-world applications such as working capital optimisation or machine-to-machine payments,”
said Abbas Albasha, Senior Strategy Consultant at G+D.
Commercial bank money represents roughly 85% of the money supply in Europe.
The Sandbox seeks to establish a framework where commercial bank money operates natively on digital rails, supporting wholesale and commercial applications.
“Financial institutions are entering a new era where tokenised commercial bank money and regulated digital currencies unlock transformative opportunities. The CBMT Sandbox provides the ideal environment to explore new use cases, from treasury operations across jurisdictions to automated industry payments,”
said Steffen Schacher, Digital Assets & UDPN Lead at GFT Technologies.
“Major banks and financial institutions worldwide trust Oracle to support critical operations. Oracle is proud to support the CBMT initiative by providing blockchain capabilities that address scalability, resiliency, security, integration, and regulatory compliance,”
added Mark Rakhmilevich, Vice President, Blockchain and Digital Assets Product Development at Oracle.
Featured image credit: Edited by Fintech News Switzerland, based on image by user8285578 via Freepik
