Regulators will also explore how stablecoins can be utilized in the new Digital Securities Sandbox.
"The decision is in line with the Eurosystem’s commitment to supporting innovation without compromising on safety and efficiency in financial market infrastructures," a release said.
Distributed ledger technology can help solve longstanding challenges in US financial markets, the report said.
Chancellor Rachel Reeves will mention the DLT-based digital gilt instrument in her first annual speech laying out her long-term vision.
The US Treasury is especially keen on distributed ledger technology (DLT) for payments, settlement and clearing.
European Central Bank executive board member Piero Cipollone would like to see a sort of European union for digital assets.
The “Layer 0” network was created in collaboration with the United States Department of Defense and is now open for commercial Web3 applications.
The new participants in the European Central Bank’s DLT tests include major financial institutions.