In its CSDonDLT project, KDPW is developing a complementary layer of the depository and settlement system which will enable the maintenance of depository accounts and securities accounts using DLT within a distributed and shared network. At this stage, the aim of the project is to familiarise KDPW participants and their technology partners with the developed model and to enable them to test key functionalities. The project supports the development of expertise, the mapping of business needs and the identification of the value that DLT brings to the capital market, followed by the appropriate preparation of participants’ IT systems for production roll-out.
The solution under development will ensure full and effective interoperability between the two technological layers of the depository and settlement system, enable the free transfer of securities between the traditional and the distributed part of the system, and facilitate the execution of OTC transactions along with their settlement on a 24/7/365 basis, regardless of the availability of the traditional layer of the system.
Information regarding held assets will be recorded on the blockchain, at investors’ wallet addresses, which will – from a formal perspective – constitute a separate component of the investor’s securities account maintained by an authorised entity; consequently, access to this layer will be available only to holders of traditional securities accounts.
The project is being carried out in accordance with applicable national and EU legislation, taking into account the security of settlement processes and the need to ensure business continuity.
KDPW is currently finalising work on integrating the DLT layer with the traditional system. Consequently, necessary changes will be made to the processes relating to the opening of depository accounts and the transfer of assets, which will be reflected in modified XML message structures.
Materials: Detailed information on the proposed DLT layer model and the operations carried out in it is provided in the CSDonDLT White Paper, available on our website: https://www.csdondlt.kdpw.pl/.
Watch the video about the CSDonDLT project.
Project documentation, comprising a description of the key objectives, including information relating to the development of a proprietary network node, changes to existing XML messages (whilst retaining their current versions), and two new messages specifically designed for the functions of the DLT layer, was made available to KDPW participants in March 2026.
Tests: Testing of the solution involving relevant stakeholders is scheduled to begin in Q2 2026.
The tests will enable a practical assessment of the functionalities, the identification of potential improvements, and the joint determination of the direction for the system’s further development based on real market needs. Further details will be provided to participants in a separate communication.
Furthermore, to ensure that as many parties as possible can participate in the solution testing process, KDPW is developing tools that will enable all entities to operate in the DLT layer without having to incur significant investment expenditure to adapt their own IT systems.
An information session for KDPW direct participants was held in April, featuring a live demonstration of the CSDonDLT solution.
Roll-out: The aim of the CSDonDLT project is to achieve readiness for the production roll-out of the solution by Q4 2026; the production roll-out and the necessary amendments to KDPW regulations, and consequently the commencement of service provision, will be addressed in subsequent phases of the project.
