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Deutsche Boerse presents blockchain concept for risk free cash transfer

First Published 23rd January 2017

Eurex Clearing acts as trusted party for transactions. Direct payments with commercial bank money.

Carsten Kengeter, Deutsche Börse

Carsten Kengeter, Deutsche Börse

Deutsche Börse Group said it has developed a concept for riskless transfer of commercial bank money via an infrastructure based on distributed ledger technology (DLT).

By combining blockchain technology with its post-trade infrastructure, Deutsche Börse aims to achieve efficiencies while at the same time investigating possible new business opportunities enabled by this technology.

Via collateralisation at Deutsche Börse Group's CCP, Eurex Clearing, credit risk inherent in tokenised coins can be mitigated. As Eurex Clearing interfaces with the Group's central securities depository Clearstream, the new concept could also offer efficiency gains in post-trade processes like settlement and asset servicing.

As a next step, Deutsche Börse will consult with clients, regulators and central banks to obtain feedback on its concept. A functional and technical prototype based on Hyperledger Fabric is currently being developed, a patent application has been filed.

Carsten Kengeter, CEO of Deutsche Börse, said: "Distributed ledger technology has remarkable potential. With this pilot, we are adding another pioneering element in the area of payments and value transfer to the debate around blockchain. We look forward to further consulting with clients, regulators and central banks on our project."

The concept is based on a collateralised coin, 'CollCo'. All peer-to-peer payments based on tokenised commercial bank money are accompanied by movements of collateral between the respective Eurex Clearing members using the CCP's functionality and rules.