Temenos integrates with two DLT-based CBDC technology stacks

As central banks globally inch towards the creation of their own digital currencies, commercial banks are expected to play key roles in these emerging systems as distributors of CBDC, handling customer KYC, wallet opening, and providing on-off ramps to deposit accounts.

Temenos has proven integration of its banking platform with multiple DLT-based CBDC technology stacks, successfully executing end-to-end retail CBDC use cases for commercial bank touch points.

Firstly, Temenos worked in collaboration with R3, a global provider of distributed ledger technology (DLT) and services to regulated and financial institutions. R3’s Corda – the private distributed application platform – is being used in a wide number of Central Bank and BIS CBDC projects globally.

By leveraging R3’s Digital Currency Accelerator managed sandbox, Temenos was able to successfully demonstrate a wide range of commercial bank use cases.

Temenos also used Hyperledger Besu, an open-source Ethereum client, run as a multi-node private, network, combined with a modified version of the Norgesbank CBDC sandbox, published by the Norwegian central bank.

The sandbox provided a CBDC smart contract token definition based on the ERC-20 standard and web UI. By deploying the smart contract, Temenos was able to simulate central bank use cases, across token minting and on-chain transfers.

Building on the work already done by central banks was an important factor in the choice of technology used for this innovation work, said Temenos. Both R3’s Corda and private Ethereum networks are being used by the BIS and numerous Central Banks for CBDC experimentation. The Norgesbank CBDC sandbox was also recently used in the BIS Project Icebreaker, exploring cross-border retail CBDC payments.