Deutsche Börse in blockchain settlement collaboration
29 November 2016 Frankfurt
Image: Shutterstock
The Deutsche Bundesbank and Deutsche Börse have collaborated to launch a functioning blockchain prototype for settlement of securities.
The prototype currently provides technical functionality for settlement of securities in delivery-versus-payment mode for digital securities and centrally-issued digital coins, and for settling basic corporate actions such as coupon payments on securities and redemption of maturing securities.
It uses blockchain-enabled access rights to allow for a flexible and adaptable rights framework ad to maintain confidentiality.
Based on a blockchain that came out of the Hyperledger project, the prototype also has the potential to simplify reconciliation processes and regulatory reporting, and observes existing regulatory requirements.
Deutsche Bundesbank and Deutsche Börse have called the service a conceptual study not ready for use on the market, however they plan to develop it further over the next few months analysing the technical performance and scalability of the prototype.
It is the first prototype to come out of a collaborative research project between the organisations.
Carl-Ludwig Thiele, member of the Deutsche Bundesbank's executive board, said: "With the blockchain prototype, the Deutsche Bundesbank and Deutsche Börse want to work together to find out whether this technology can be used for financial transactions, and if so, how this can be achieved.”
“The Deutsche Bundesbank hopes that this prototype will contribute to a better practical understanding of blockchain technology in order to assess its potential."
Carsten Kengeter, CEO of Deutsche Börse, added: "Along with the Deutsche Bundesbank we are innovatively and creatively addressing potentially radical technological opportunities for the financial sector.”
“We will continue to do our utmost to leverage blockchain's efficiency potential and to better understand and minimise the associated risks of this technology."
The prototype currently provides technical functionality for settlement of securities in delivery-versus-payment mode for digital securities and centrally-issued digital coins, and for settling basic corporate actions such as coupon payments on securities and redemption of maturing securities.
It uses blockchain-enabled access rights to allow for a flexible and adaptable rights framework ad to maintain confidentiality.
Based on a blockchain that came out of the Hyperledger project, the prototype also has the potential to simplify reconciliation processes and regulatory reporting, and observes existing regulatory requirements.
Deutsche Bundesbank and Deutsche Börse have called the service a conceptual study not ready for use on the market, however they plan to develop it further over the next few months analysing the technical performance and scalability of the prototype.
It is the first prototype to come out of a collaborative research project between the organisations.
Carl-Ludwig Thiele, member of the Deutsche Bundesbank's executive board, said: "With the blockchain prototype, the Deutsche Bundesbank and Deutsche Börse want to work together to find out whether this technology can be used for financial transactions, and if so, how this can be achieved.”
“The Deutsche Bundesbank hopes that this prototype will contribute to a better practical understanding of blockchain technology in order to assess its potential."
Carsten Kengeter, CEO of Deutsche Börse, added: "Along with the Deutsche Bundesbank we are innovatively and creatively addressing potentially radical technological opportunities for the financial sector.”
“We will continue to do our utmost to leverage blockchain's efficiency potential and to better understand and minimise the associated risks of this technology."
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