Market operator Deutsche Börse has unveiled a new blockchain proof-of-concept focused on commercial bank cash transfers.
Dubbed ‘CollCo’ (for ‘collateralized coin’), the project is designed to work in conjunction with Eurex Clearing, the clearing house utilized by Deutsche Börse. Using the Hyperledger Fabric project’s code as a basis, the firm is seeking patent approval for its transfer solution, it announced today.
According to Deutsche Börse, the next step will include working with clients, as well as regulatory and central banking contacts, to continue to fine-tune the project.
The firm described the CollCo functionality, saying:
“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 [central counter party’s] functionality and rules.”
It went on to say that the project addresses “existing and potential new use cases”, including the “handling of margining requirements, credit risk free payments, and delivery-versus-payment asset/value transfer on the blockchain”.
The market operator has spent much of the past year experimenting with various blockchain use cases, including one in partnership with Germany’s central bank. Last February, the firm took part in New York blockchain startup Digital Asset Holding’s $60m funding round, while at the same time joining its board of directors.
The development comes as Deutsche Börse spelled out its plans for the future.
During a speech given last week, CEO Carsten Kengeter spoke about the move toward the so-called “Exchange 4.0” powered by next-generation technologies.
“Exchange 4.0 will use blockchain intelligently. Exchange 4.0 will convert data into investment tools,” Kengeter told attendees. “Finally, Exchange 4.0 will be as varied – and perhaps also as easy to use – as an app store.”
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