Deutsche Börse and the German Central Bank (Bundesbank) announced at the end of the week that they completed a test with 2 new blockchain technology prototypes. The bank and owner of the Frankfurt Stock Exchange aim to explore the potential of blockchain technology in securities transactions.
In the past, experts have emphasized how useful Ethereum and other cryptocurrencies might be in this environment. And the result of the experiments with both models was positive. The potential of the Blockchain was confirmed as positive
Tests with orders and payments
In addition to pure transaction processing in the securities sector, the test also included the applicability of the blockchain for payments in interest settlement and maturity reimbursements in the bond area. And the test was a success, according to the press release of Bundesbank and the German Stock Exchange.
On the one hand, the well-known Digital Asset Platform and, on the other hand, the Hyperledger Fabric format served as the basis for the new blockchain developments. Things are starting to get better, and blockchain systems like Bitcoin and other currencies are finally finding their way in Germany.
According to Burkhard Balz, Member of the Board of the Deutsche Bundesbank:
“During this project, Deutsche Bundesbank and Deutsche Börse learned a lot about the usage of this technology and its concrete implementation. We expect the rapid development to continue, and also see the potential in using it for high-volume applications. The approach of a permissioned architecture, which takes into account the requirements of the financial sector from the outset, has proven to be right.”
Systems must meet the legal requirements
The current research project in connection with the “Blockbain” (“blockchain based settlement technology research”) project of the two German institutions could be trend-setting. In the future, the infrastructure on the German financial market might gradually open for this part of the digital world.
Prototypes are already being optimized to soon surpass the results of the first performance test. Bundesbank and Deutsche Börse rely on a closed architecture in the sense of compliance with current financial market guidelines. It is only open to users with the appropriate authorization, according to the statement from the Board of the Deutsche Bundesbank.
Berthold Kracke, CEO of Clearstream Banking AG and Head of Clearstream Global Operations at Deutsche Börse Group:
We are very happy with the results of the project. The tests have shown that blockchain technology is a suitable basis for applications in the field of settlement and other financial infrastructures. Thanks to the cooperation with Deutsche Bundesbank and the expertise of Digital Asset, we were able to tailor the product to the needs of the industry.”