The Bank of France and Euroclear announced a joint project, Pythagore, to tokenize Negotiable EUropean Commercial Paper (NEU CP) using distributed ledger technology, positioning the initiative as a step in modernising euro area short-term funding markets. NEU CP is described as the largest short-term debt market in the euro area, with EUR 310 billion outstanding, and the tokenisation effort is intended to deliver operational and administrative efficiencies while strengthening transparency and security for market participants. Euroclear’s DLT platform is to be designed with interoperability as a core feature to support integration across financial market infrastructures, building on earlier innovation work between the two organisations, including the November 2024 issuance of France’s first native digital bond. A pilot phase is expected to begin at the end of 2026, aligned with the Eurosystem’s Pontes project to deploy a wholesale central bank digital currency interconnected with TARGET services.
Bank of France 2025-10-10
Bank of France and Euroclear launch Pythagore project to tokenize the EUR 310bn NEU commercial paper market
The Bank of France and Euroclear have launched Project Pythagore to tokenize Negotiable European Commercial Paper (NEU CP) using distributed ledger technology, aiming to modernize euro area short-term funding markets. This initiative seeks to enhance operational efficiencies, transparency, and security, with Euroclear's platform focusing on interoperability. A pilot phase is planned for late 2026, alongside the Eurosystem's Pontes project for a wholesale central bank digital currency.