Germany's central bank has teamed up with exchange operator Deutsche Börse to develop a functional prototype for blockchain technology-based settlement of securities.
The prototype enables the settlement of securities in delivery-versus-payment mode for centrally-issued digital coins, as well as the pure transfer of either digital coins or digital securities alone.
In addition, it is capable of settling basic corporate actions such as coupon payments on securities and the redemption of maturing securities.
The pair stress that their prototype is "far from market-ready" but say that they now plan to work on it over the next few months to test its technical performance and scalability.
Carsten Kengeter, CEO Deutsche Börse, says: "We will continue to do our utmost to leverage blockchain's efficiency potential and to better understand and minimise the associated risks of this technology."