Deutsche Bundesbank and Deutsche Bank collaborate on Hyperledger blockchain project

Rage Review : Germany's Deutsche Bundesbank and Deutsche Bank have collaborated to publish a report on a Hyperledger functional prototype for blockchain-based securities settlement. The innovative prototype is designed to provide technical functions for securities settlement in a payment delivery model, issue digital coins, and transmit digital coins or digital securities separately. The Deutsche Bundesbank hopes that this prototype will help to better understand blockchain technology in practice so that its potential can be evaluated. However, it is currently just a purely conceptual study and is far from being put into use. The two institutions will continue to work hard to improve the prototype and develop a test concept.

Translation: Nicole

This week, Germany's Deutsche Bundesbank and Deutsche Bank teamed up to launch a report on a Hyperledger functional prototype for blockchain-based securities settlement. The innovative prototype aims to provide technical functions for securities settlement in the payment delivery model, issue digital coins, and transmit digital coins or digital securities separately. In addition, it can also solve basic corporate actions such as coupon payments on securities and redemption of matured securities.

The Bundesbank and Deutsche Bank plan to further develop the prototype in the coming months, after which the product can be used to analyze the technical performance and scalability of such a blockchain-based application.

Carl-Ludwig Thiele, member of the Executive Board of the Deutsche Bundesbank, explained:

“The Bundesbank and Deutsche Bank want to work together on a blockchain prototype to determine whether this technology can be used in financial transactions and, if so, how this can be achieved. The Bundesbank hopes that this prototype will contribute to a better practical understanding of blockchain technology so that its potential can be assessed.”

Carl-Ludwig Thiele

Carsten Kengeter, CEO of Deutsche Bank AG, added:

“By working together with the Deutsche Bundesbank, we can creatively address potentially radical technological opportunities in the financial sector. We will continue to do everything we can to leverage the energy efficiency potential of blockchain and to better understand and minimize the risks associated with this technology.”

The blockchain-based prototype is the first result of a collaborative project between Deutsche Börse and the Deutsche Bundesbank. The prototype is a purely conceptual study. It is far from ready for use, and the two institutions will continue to work on improving the prototype and developing a test concept.

The prototype has the following features:

Blockchain-based payment and securities transfer and securities transaction settlement, securities transactions with instant and delayed payments;

Maintaining confidentiality/access rights to blockchain-based concepts based on a flexible and adaptable framework;

the prevailing practices of current regulatory requirements;

Identify the potential to streamline the settlement process and regulatory reporting;

An implementation based on the blockchain concept in Hyperledger.