Originally published on: October 01, 2024
In an exciting collaboration between Börse Stuttgart Group and the European Central Bank (ECB), a groundbreaking blockchain test has successfully cut settlement time for secondary market transactions. This innovative development is a significant milestone for Börse Stuttgart Group, the second-largest exchange in Germany, as they achieved their first-ever settlement of exchange transactions with blockchain-based securities against central bank money.
Partnering with six prominent banks including Commerzbank, Deutsche Bank, and DZ Bank, the test conducted by Börse Stuttgart Group delved into the interoperability of blockchain and central bank money. Through the use of blockchain-based settlement solutions, the institutions tested various transactions involving tokenized securities like bonds, funds, and shares, reducing settlement time from two days to mere minutes.
During the pilot project, both individual cases and multiple transaction scenarios were explored to provide a comprehensive understanding of the implications of blockchain technology in real-world market conditions. The tests simulated normal operational environments, including exceptional cases, highlighting the reliability of blockchain integration in digital markets.
In addition to the success of the blockchain test, DZ Bank recently partnered with Börse Stuttgart Digital to integrate the group’s regulatory infrastructure and technical elements for the bank’s upcoming crypto services. This collaboration aims to enable approximately 700 cooperating banks under DZ Bank’s umbrella to offer retail customers access to digital assets by the end of 2024.
The progress made by Börse Stuttgart Group and ECB in blockchain technology signifies a significant step towards revolutionizing capital market transactions. With reduced settlement times and increased efficiency, the future of digital markets looks promising.
