Boerse Stuttgart, ECB Complete Trials for Tokenized Securities Trading
Veronika Rinecker is based in Germany, studied international journalism and media management. She specializes in politics and regulation, energy, blockchain, and fintech. Since 2017, she has been...
The Boerse Stuttgart Group, the second-largest exchange in Germany, has completed its blockchain tests conducted as part of the European Central Bank (ECB) initiative.
As part of the ECB’s blockchain tests, the Boerse Stuttgart Group was the first to pilot the settlement of exchange transactions involving blockchain-based securities against central bank money.
Partner banks such as Commerzbank, Deutsche Bank, DZ Bank, LBBW, Bankhaus Metzler, and V-Bank participated as trading and settlement participants, connected to the Stuttgart Stock Exchange’s DLT-based settlement solution. This system was also integrated with the traditional Euro payment system through a connection with the Deutsche Bundesbank’s Trigger solution.
According to the press release shared with CryptoNews, the exchange’s settlement solution for tokenized securities has proven highly efficient, even for secondary market transactions.
The new system significantly streamlines and accelerates the settlement of securities transactions, reducing the time required “from two days to a few minutes.” This efficiency gain is expected to lead to cost savings for both investors and financial institutions: “The tests showed that settlement processes can be fully automated, step-by-step, and directly between trading participants – efficiently, securely, and without counterparty risk,” as per the press release.
The tests encompassed a wide range of tokenized securities, including bonds, funds, and stocks, demonstrating the versatility of the technology.
“Blockchain technology is
Read more on cryptonews.com
