Deutsche Börse, Swisscom and three Swiss partner banks have successfully completed securities transactions in tokenised shares using Distributed Ledger Technology (DLT) for a proof of concept. This was announced by Deutsche Börse in a press release on 19 November.
Token-based securities settlement for companies
Together with Falcon Private Bank, Vontobel and Zürcher Kantonalbank, the two companies have tested the token-based securities settlement of shares in small and medium-sized companies.
For the proof of feasibility, “the share register of a real Swiss company was digitized via the platform of the blockchain start-up Daura and the shares of the company tokenized.
In order to also test the payment of securities transactions via DLT, “money has also been made available in the form of cash tokens,” writes Deutsche Börse. The DLT protocol Hyperledger Fabric was used for this purpose. The company describes the subsequent transfer of the tokenized securities as follows:
“The money deposited by the participating banks was deposited as collateral on the central bank account of Eurex Clearing at the Swiss National Bank. In the subsequent securities transactions, the banks acted as counterparties and exchanged securities tokens for cash tokens via DLT to fulfill the transactions.”
In the far-reaching test involving many contracting parties, the partners are also testing the integration into classic banking processes.
Integrated ecosystem for digital assets
Deutsche Börse and Swisscom have been working together since March 2019 with the Singapore fintech company Sygnum on the development of a financial market infrastructure for digital assets. The planned “integrated ecosystem for digital assets” will enable the issuance and custody of digital assets as well as access to liquidity and banking services.