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SIX develops blockchain based bond issuing solution

First Published 17th March 2017

Prototype covers bond life-cycle enabling the issuing of bonds as smart contracts that specify dates coupon payments are made, how much, and how/when repayments occur.

Thomas Zeeb, SIX Securities Services

Thomas Zeeb, SIX Securities Services

London - SIX Securities Services, Switzerland's post-trade market infrastructure has developed - and intends to deploy - a distributed ledger technology (DLT) based solution covering the bond life-cycle - from issuance to settlement.

In late September last year SIX Securities Services announced its partnership with Digital Asset Holdings to develop distributed ledger technology based solutions for the Swiss Financial Market.

The bond issuance prototype enables the issuing of bonds as smart contracts that specify at what dates coupon payments are made, for what amounts and how/when repayments occur. It includes the connection of the smart contract to the chain where buyers can allocate money to the bond by paying in digitalized currency to the address of the bond.

Thomas Zeeb, CEO SIX Securities Services said: "Though still some way off for market-wide adoption, we are firmly of the belief that the potential shown here is promising - for us - and for the industry as a whole."

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