France and Luxembourg have used an experimental central bank digital currency (CBDC) to settle a bond worth 100 million euros ($104 million), the latest in a series of trials in tokenized financial markets.

The Venus Initiative "shows how digital assets can be issued, distributed and settled within the Eurozone, in a single day" and "confirms that a well-designed CBDC can play a critical role in the development of a safe tokenised financial asset space in Europe," Nathalie Aufauvre, General Director of Financial Stability and Operations at the French Central Bank, said in a statement.

The initiative also involved Goldman Sachs, Santander and Société Générale as well as the publicly funded European Investment Bank.

The trial is the latest in a series of CBDC tests by the French central bank, to manage liquidity in decentralized finance and settle cross-border transactions. The European Union has recently legislated to test out blockchain-based securities trading.

(by Jack Schickler)