Deutsche Bundesbank and Deutsche Börse unveil blockchain prototype
Germany’s central bank Deutsche Bundesbank and Deutsche Börse have unveiled a functional prototype for the blockchain technology-based settlement of securities. It is, however, “purely a conceptual study” and “is far from being market-ready”.
This is the first collaborative effort between Deutsche Bundesbank and Deutsche Börse.
The two parties say they will develop the prototype further over the next few months, and the resultant product will “be used to analyse the technical performance and the scalability of this kind of blockchain-based application”.
“The prototype is designed to provide the technical functionality for the settlement of securities in delivery-versus-payment mode for centrally-issued digital coins, as well as the pure transfer of either digital coins or digital securities alone,” Deutsche Bundesbank and Deutsche Börse explain.
“In addition, it is capable of settling basic corporate actions such as coupon payments on securities and the redemption of maturing securities.”
The prototype has the following features:
- ￼￼￼￼￼￼￼￼￼￼￼blockchain-based payments and securities transfers as well as the settlement of securities transactions against both instant and delayed payment;
- maintenance of confidentiality/access rights in blockchain-based concepts on the basis of a flexible and adaptable rights framework;
- general observance of existing regulatory requirements;
- identification of potential to simplify reconciliation processes and regulatory reporting;
- implementation of a concept based on a blockchain from the Hyperledger project.