KDPW CSDonDLT

KDPW
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CSDonDLT
is an innovative project under which KDPW will create an additional layer of the post-trade system based on distributed ledger technology (DLT).

The solution, which enables the safekeeping and seamless transfer of securities as well as the settlement of OTC transactions within the DLT layer, is aimed at improving operational and cost efficiency, enhancing transparency, and minimizing operational and systemic risks, while ensuring compliance with applicable regulations and capital market standards.

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KDPW
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Vision

KDPW recognises the innovative and potentially disruptive nature of DLT.

KDPW recognises the innovative and potentially disruptive nature of DLT particularly in the context of operations carried out on capital markets. Based on our existing experience, we have taken proactive steps to assess the impact and added value of implementing DLT-based solutions in post-trade services. These services constitute the core and pivotal area of KDPW’s depository-settlement system.

In particular, as part of on-going efforts, KDPW has identified market areas and operations where the application of DLT-based solutions and new market models could yield the most significant benefits, including enhanced efficiency, reduced risks, and cost savings.

As a result of our analyses, we have identified that there is particular potential in this respect for the over-the-counter (OTC) market, which is currently characterized by a significant level of complexity. Detailed information on the model proposed by KDPW is described in the White Paper published in June 2025.

CSDonDLT CSDonDLT

KDPW
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Cooperation

The White Paper is an invitation to capital market institutions to participate in the CSDonDLT project.

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The White Paper published by KDPW in June 2025 is an invitation to capital market institutions to participate in the CSDonDLT project and to make a joint effort to develop a new market model. Participation in this innovative undertaking is an opportunity to co-create the future of the Polish capital market infrastructure, as well as to introduce solutions that can bring real benefits to all its participants.

The project represents a significant step towards the modernisation and development of the Polish capital market infrastructure in response to global trends and initiatives undertaken by other European markets in the adoption of innovative technologies and the creation of new business and operational models.

KDPW
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Technology

The selection of the appropriate model for the DLT infrastructure played a pivotal role in the CSDonDLT project.

After evaluating the available technologies based on the specified criteria, a decision was made to construct a solution utilising a private blockchain network powered by the Ethereum Virtual Machine (EVM). Consequently, the Hyperledger Besu (HLB) platform, developed as an open-source model (Apache 2.0 license), was employed to establish the DLT layer of the depository-settlement system. HLB offers support for both public networks and the establishment of private blockchain ecosystems, enabling the selection from various consensus models while maintaining technological compatibility with the prominent public networks utilised in the development of decentralised finance (DeFi) market services.

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About KDPW

Krajowy Depozyt Papierów Wartościowych S.A. (KDPW) is a Polish financial market infrastructure institution with over 30 years of experience, holding EU authorisation to provide services as a central securities depository.

KDPW provides a broad range of financial services in the post-trade area: it operates a central securities depository and performs securities settlement, as well as offering transaction reporting services (as an authorised trade repository and approved reporting mechanism – ARM), providing market information and data, assigning identification codes to financial instruments and market participants.

These services are in particular used by banks, brokerage houses, issuers of securities, businesses, and in some cases – investors as well.

KDPW forms a capital group of companies with KDPW_CCP S.A., which acts as an authorised central counterparty (CCP) for the clearing of transactions in financial instruments.

KDPW has for many years been actively engaged in research and development, including the development of technological
solutions. KDPW and KDPW_CCP operations, which are built on the foundations of security and stability, as well as their ability to interact at an operational level with other European systems and foreign financial institutions, are mostly processed by IT systems developed in-house by KDPW specialists.

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White Paper

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We invite you to partner with us.

The CSDonDLT White Paper is the result of many months of efforts by a team of KDPW experts.

We hope it will mark the beginning of a project
that will strengthen and advance the Polish capital market.
blockchain@kdpw.pl