Deutsche Börse and Swisscom, together with Falcon Private Bank, Vontobel and Zürcher Kantonalbank, have settled securities transactions in tokenised shares on a block-chain basis. With this proof of concept, the partner banks will demonstrate what a securities settlement of shares in small and medium-sized enterprises (SMEs) could look like in the future using DLT.
According to a press release issued by Deutsche Börse Group on 19 November, the share register of a Swiss company was first digitised via the daura platform and then successfully tokenised. Cash tokens were also used to carry out the blockchain-based transaction.
Deutsche Börse issued cash tokens in Swiss francs via its subsidiary Eurex Clearing. The amount was then deposited on a central bank account of Eurex Clearing as collateral. In the subsequent securities transactions, the banks then transferred securities tokens against cash tokens using block chains.
Deutsche Börse and Swisscom collaborated on the software development. They accessed daura’s digital share register and Custodigit’s applications for storing and managing digital assets. The daura company uses DLT to digitise shares of small and medium-sized Swiss companies. Swiss corporations can also digitize their share register on the daura platform. Custodigit, on the other hand, provides custody and management of digital assets for regulated financial services institutions.
Jens Hachmeister, Head of New Markets of Deutsche Börse Group, commented on the successful transaction:
It is strategically important for us to further develop the possibilities of securities settlement using DLT. This brings us a big step closer to our goal of efficiently harnessing the potential of this new technology for the financial services industry in Germany and Switzerland.
Deutsche Börse and Swisscom develop ecosystem for digital assets
For Deutsche Börse and Swisscom, the proof of concept is “another milestone in the development of a comprehensive ecosystem for digital assets”. According to Peter Schnürer, CEO of daura, “the biggest winners of a functioning digital asset ecosystem will ultimately be investors and companies, especially small and medium-sized enterprises”. The securities were settled in accordance with the applicable regulations and requirements of the relevant regulatory authorities.
The partnership between Deutsche Börse and Swisscom could be a trend-setting alliance in the area of tokenised securities. Deutsche Börse is one of the largest stock exchanges worldwide and, with Swisscom, has one of the leading information and communications companies in Switzerland at its side. The partner banks Falcon, Vontobel and Zürcher Kantonalbank were also involved in the transaction.