The Commercial Bank Money Token initiative has welcomed three new technical service providers, namely UDPN, G+D, and GFT Technologies.

The project is investigating the issuance and usage of tokenized deposits for business transactions via distributed ledger technology (DLT).

A proof-of-concept involving banks such as DZ Bank, Unicredit, and Commerzbank, along with industrial participants like Siemens, BASF, Evonik, and Mercedes Benz, has showcased potential applications. The CBMT model is intended to secure and streamline digital transactions while adhering to regulatory standards.

Exploring a variety of use cases

The group intends to test the system across different scenarios including delivery-versus-payment in supply chain and trade finance, inter-company cross-border transfers, and working capital management. Advanced applications such as machine-to-machine payments in industrial environments, both online and offline, are also under consideration.

G+D officials state that tokenized deposits and stablecoin-like solutions could support automated payments and IoT-related processes. They believe the CBMT framework is structured to facilitate the issuance and operation of these deposit services.

According to GFT representatives, commercial bank money tokens can accelerate business transactions, enhancing financial operations in a digital economy. The involvement of UDPN and GFT aims to develop technology systems that can contribute to broader digital transformation efforts.

The CBMT solution will leverage the technical capabilities of UDPN, G+D, and GFT, covering system interoperability, integration with banking and enterprise infrastructure, and DLT-based services. The working group plans to increase adoption by engaging new financial institutions and industry participants.