Originally published on: October 01, 2024
Boerse Stuttgart Group, the second-largest exchange in Germany, has successfully tested secondary market transactions using blockchain technology in collaboration with the European Central Bank (ECB). This milestone marks the group’s inaugural settlement of exchange transactions with blockchain-based securities against central bank money, as per a news release shared with Cointelegraph.
The test, part of the ECB’s exploration into blockchain tech, involved six partner banks: Commerzbank, Deutsche Bank, DZ Bank, LBBW, Bankhaus Metzler, and V-Bank. These institutions, along with Boerse Stuttgart Group, tested various transactions using five tokenized securities, such as bonds, funds, and shares.
By focusing on the interoperability of blockchain and central bank money, the settlement time was significantly reduced from two days to just a few minutes. The pilot project aimed to assess the implications of blockchain tech in real-world market conditions through a variety of transaction scenarios.
The tests simulated normal operational environments, including exceptional cases, to provide a comprehensive understanding of blockchain integration reliability in digital markets. In addition to Boerse Stuttgart’s crypto custody service, Euwax, a German broker, contributed to the test findings and the ECB’s evaluation of blockchain applications in capital market transactions.
DZ Bank’s recent partnership with Boerse Stuttgart Digital to integrate the group’s regulatory infrastructure and technical elements for new crypto services further showcases the growing collaboration between traditional financial institutions and blockchain platforms. This collaboration will enable around 700 cooperating banks under DZ Bank’s umbrella to offer retail customers digital asset access, with the first bank connections planned by the end of 2024.
With advancements in blockchain technology and partnerships between financial institutions, the future of digital asset transactions looks promising. Stay informed about the latest in crypto laws and guidelines by subscribing to our Law Decoded newsletter, delivering insights every Monday. Subscribe today to make smart choices for your crypto ventures.
