October 25, 2018 10:48 PM
Germany’s central bank and the operator of its stock exchange – one of the largest securities trading centers in the world – have successfully performed a pilot of securities settlements using blockchain technology.
Deutsche Bundesbank and Deutsche Börse Group, long-time collaborators in the development of financial market infrastructure, partnered in March 2016 for a project called BLOCKBASTER. The project's goal was to look at the usefulness of blockchain in improving back-office services for the bank and the stock exchange. As part of this goal, conceptual prototypes would be created to test blockchain-based elements of the transfer and settlement of securities and cash.
In a press release[1] today, October 25, 2018, the pair announced they have successfully completed performance tests of two prototypes for blockchain-based settlements of securities transactions, payments, interest payments, and repayments when a bond matures. The release confirms:
"The tests showed that both prototypes are suitable for the productive operation of a realistic financial market infrastructure and can serve as a basis for further development."
The partnership chose to test two "technology stacks" under assumed market conditions. These blockchain protocols were built on Hyperledger Fabric (version 1.0) and the Digital Asset (DA)[2] platform.
The Deutsche Bundesbank and Deutsche Börse Group say that both platforms have had subsequent releases to those used in their prototypes "which may even improve the performance" in their securities settlements.
In the release, Burkhard Balz, member of the executive board of Deutsche Bundesbank, said that he sees the potential of using blockchain technology for "high-volume" applications and that "the approach of a permissioned architecture, which takes into account the requirements of the financial sector from the outset, has proven to be right."
Berthold Kracke, CEO of Clearstream
