German securities market Deutsche Boerse and Swiss state-run telecom Swisscom have settled securities transactions utilizing totally different blockchain protocols. In a joint proof-of-concept (PoC) involving quite a lot of banks, the contributors exchanged cash within the type of money tokens towards tokenized shares, Deutsche Börse formally introduced on Nov. 19.
Based mostly on blockchain expertise, the joint PoC intends to indicate the potential of latest applied sciences within the monetary companies sector and keep Germany and Switzerland’s experience within the digital asset ecosystem.
Three main Swiss banks participated within the PoC
The PoC concerned main Swiss banks, together with the fourth-largest Swiss financial institution Zuercher Kantonalbank, funding financial institution Vontobel and Falcon Non-public Financial institution. These banks had been appearing as counterparties and exchanged securities tokens towards money tokens, the press launch notes.
The central financial institution of Switzerland, the Swiss Nationwide Financial institution, additionally not directly participated within the PoC because the money tokens had been deposited as collateral in Eurex Clearing’s account within the financial institution. The money tokens in Swiss francs had been offered by Deutsche Boerse.
Corda and Hyperledger had been used for cross-chain safe settlement
To be able to course of money and safety tokens, the contributors had been deploying two totally different distributed ledger expertise (DLT) protocols — R3’s Corda and IBM’s Hyperledger Cloth — to finish cross-chain safe settlement.
Different contributors of the PoC included Swiss blockchain agency daura and Custodigit, a joint custodial enterprise by Swisscom and Sygnum. The companies offered core components of the digital share registry for the PoC, Deutsche Börse famous.
The brand new initiative by Deutsche Borse and Swisscom is one other milestone within the present blockchain-related collaboration of the businesses. Earlier this 12 months, Deutsche Borse Group and Swisscom partnered with Singapore-based fintech agency Sygnum to develop compliant monetary market infrastructure for digital belongings.