The Central Securities Depository (CSD) of the Czech Republic has chosen R3 as the technology provider for its new distributed ledger technology (DLT) securities settlement system. The collaboration will leverage R3’s Corda platform, as part of CSD Prague’s engagement in the European Union’s DLT Pilot Regime aimed at fostering innovative financial market infrastructure across the EU.
The European Securities and Markets Authority (ESMA) recently approved Corda as the first authorised DLT platform under the temporary regulatory framework of the pilot regime. This endorsement marks a significant milestone, positioning Corda to play a central role in enabling secure, scalable, and compliant DLT operations within European markets.
CSD Prague, the first institution to receive official authorisation under the EU’s Distributed Ledger Technology (DLT) Pilot Regime, aims to modernise its existing infrastructure to improve efficiency in handling Czech securities and bonds, while ensuring that it aligns with the rigorous requirements of EU financial regulations. The depository views Corda’s interoperability as a key advantage for future scalability and connectivity within a broader network of financial institutions.
Network sovereignty
“We are excited to implement R3’s Corda technology, which meets the privacy, security, and regulatory requirements set by ESMA at scale,” said Ondřej Dusílek, CEO of CSD Prague in a R3 press release. “While our primary focus remains on domestic market settlement, Corda’s interoperability is promising for expanding our offerings and connecting with diverse financial systems in compliance with EU standards.”
R3’s Corda platform is designed with network sovereignty in mind, allowing institutions like CSD Prague to maintain control over the networks they operate on. This level of control is critical for institutions seeking to modernise infrastructure without compromising regulatory compliance.
