According to Cointelegraph, Boerse Stuttgart Group, Germany's second-largest exchange, has successfully tested secondary market transactions using blockchain technology in collaboration with the European Central Bank (ECB). This milestone marks the group's first settlement of exchange transactions with blockchain-based securities against central bank money. The settlement solution was integrated with the Deutsche Bundesbank's trigger solution, linking it to the traditional euro payment system.
The test, part of the ECB's exploration into blockchain technology, involved six partner banks: Commerzbank, Deutsche Bank, DZ Bank, LBBW, Bankhaus Metzler, and V-Bank. Utilizing Boerse Stuttgart Group's blockchain-based settlement solution, these institutions conducted various transactions involving five tokenized securities, including bonds, funds, and shares. The focus was on the interoperability of blockchain and central bank money, significantly reducing settlement time from two days to just a few minutes. The tests demonstrated that settlement processes could be automated, step-by-step, directly between trading participants, ensuring efficiency, security, and the elimination of counterparty risk.
The pilot project examined individual cases and multiple transaction scenarios to assess the implications of blockchain technology in real-world market conditions. Simulating normal operational environments, including exceptional cases, provided a comprehensive understanding of blockchain integration's reliability in digital markets. In addition to Boerse Stuttgart's crypto custody service, EUWAX AG, a German broker, contributed to the test findings and the ECB's efforts to evaluate blockchain applications in capital market transactions.
On September 19, DZ Bank partnered with Boerse Stuttgart Digital Group to integrate the group's regulatory infrastructure and technical elements for the bank's new crypto services. Boerse Stuttgart Digital facilitated DZ Bank's operational elements, with the first banks expected to be connected by the end of 2024. This collaboration will enable approximately 700 cooperating banks under DZ Bank's umbrella to offer retail customers access to digital assets.
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