Banque de France and Euroclear have launched a joint project, “Pythagore”, to explore the tokenisation of Negotiable European Commercial Paper (NEU CP). The initiative will test how distributed ledger technology (DLT) could be applied to the euro area’s largest short-term debt market, explains Euroclear in a press release.
With around €310 billion outstanding, the NEU CP market is a key source of short-term financing for corporates and financial institutions in France. The project’s objective is to assess whether tokenisation can make issuance and settlement processes more efficient, transparent, and secure.
The pilot is expected to begin at the end of 2026, in parallel with the Eurosystem’s “Pontes” initiative, which is developing infrastructure for a wholesale central bank digital currency (CBDC). The plan is for Euroclear’s DLT-based platform to connect with TARGET services, supporting interoperability between existing and emerging financial infrastructures.
Digital issuance tests
The collaboration follows earlier experiments between the two institutions, including the issuance of France’s first digitally native note in late 2024. That trial was seen as a first step toward integrating DLT into capital market operations.
Increase transparency
According to Banque de France, the project fits within broader efforts to automate and increase transparency in the NEU CP market, a segment it sees as strategically important for deploying a wholesale CBDC in the coming years.
Euroclear describes the work as an extension of its role in supporting market infrastructure development in France, focusing on interoperability and operational efficiency rather than on product innovation.
