Deutsche Börse, the operator of the Frankfurt Stock Exchange, and Commerzbank conducted a test transaction using securities, tokens and distributed ledger technology (DLT).
The German fund MEAG, which is managed by ERGO Group, one of the largest insurance companies in Germany, also participated in the transaction. However, the underlying technology and legal concept were developed by Deutsche Börse and Commerzbank.
Companies said that the transaction marks an important step in exploring the possibilities of the blockchain, which can be used in the future in the financial sector. According to Commerzbank representatives, the bank sold MEAG securities and used the received tokens as collateral on the Eurex Clearing international exchange, owned by Deutsche Börse and acting as an intermediary and “tokenizer” of funds.
At the same time, the participants in the transaction reported its conduct to regulatory authorities. At the moment, the type of transaction has not yet been approved, but further transactions will be carried out only after the approval of regulators. Frank Wellhofer, member of the MEAG Board of Directors, believes that conducting such transactions on the blockchain will not require the participation of a third party. In addition, transactions with securities will be conducted much faster.
Recall that last year, the largest Chinese bank Zheshang Bank issued securities in the amount of $ 58 million using the Lianrong blockchain platform, and in July, IBM and Australian banks tested the blockchain platform for providing bank guarantees.
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