ECB tests XRP Ledger technology
The European Central Bank (ECB) is currently running a pilot project in which it is experimenting with new technologies for settling transactions in central bank money.
The European Central Bank (ECB) is currently running a pilotproject in which it is experimenting with new technologies for settling transactions in central bank money. It is using a private infrastructure from the company Axiology, which is built on the XRP Ledger's open-source code.
Axiology was founded by Marius Jurgilas, former board member of the central bank of Lithuania. According to the report, alongside Axiology other distributed ledger technology providers participated in the test, as did four central banks. A total of 48 use-cases were tested.
Axiology focused specifically on the institutional issuance of debt instruments and the full lifecycle management of these securities from issuance to coupon payments and redemption. While the infrastructure is based on the open-source Ripple technology, it is designed as a closed and "permissioned" system, meaning access is only possible with permission.
The report states literally: “Although Axiology benefits from XRP Ledger technology, it functions as an independent system developed to make the trading, settlement and custody of tokenized assets such as financial instruments safer and more efficient.”
Unlike public blockchains, Axiology must meet stricter requirements for compliance and risk management. KYC procedures are mandatory, and on-chain features are intentionally limited to reduce smart contract risks.
The tests are mainly intended to explore whether Axiology’s infrastructure can work well with both central bank money and external settlement platforms. This interoperability is crucial to determine if the system is suitable for large-scale real-world use.
By the way, the industry recently warned that XRP could lose ground to RLUSD, Ripple’s own stablecoin.
