Deutsche Borse unveils future securities lending platform based on blockchain

26 March 2018

Deutsche Börse GroupDeutsche Börse Group, a Frankfurt-based marketplace for trading shares and other types of securities, announced its plans to create a new ecosystem for lending securities. The new structure will be based on high-end blockchain technologies.

The official statement reports that Deutsche Börse will develop a new system capable to ensure higher level of securities settlement, and it will be backed by technical support from HQLAX, a financial management services provider, and powered by Corda platform designed by R3, a distributed database technology company developing blockchain solutions.

Deutsche Börse noted that the initiative is conditioned by the current infrastructure, where global securities system is fragmented, resulting in higher expenditures and low settlement liquiditiy.

“These assets are in heightened demand due to the implementation of bank regulations for liquidity, mandatory clearing and margin requirements for OTC derivatives,” explains Deutsche Börse.

Guido Stroemer, CEO of HQLAX, notes: “Our goal is to mobilize liquidity across pools of collateral currently residing in disparate custody accounts around the globe.”

HQLAX has been for some time already partnering with R3 over blockchain projects and earlier announced a solution for securities lending, a project joined by Credit Suisse and ING. The project was piloted this year in early March with a $30 million transaction involving securities completed by the banks. The proof-of-concept of the solution was presented and tested last year.

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