25 March 2017
visit http://events.sap.com/gb/fsi-forum-2017/en/home

Deutsche Börse looks for collateral shift with 'CollCo' digital coins

23 January 2017  |  9138 views  |  0 deutsche boerse

Deutsche Börse has filed a patent for a new way of shifting collateral among banks using tokenised digital coins.

The concept is based on a collateralised coin, “CollCo”. All peer-to-peer payments based on tokenised commercial bank money are accompanied by movements of collateral between the respective Eurex Clearing members using the CCP's functionality and rules.

CollCo addresses existing and potential new use cases, says the exchange group, including the handling of margining requirements, credit risk free payments, and delivery-versus-payment asset/value transfer on the blockchain.

As Eurex Clearing interfaces with the Group's central securities depository Clearstream, the new concept might also offer the potential for efficiency gains in post-trade processes like settlement and asset servicing.

“Our innovative concept can be the basis for a variety of use cases, among them credit risk free cash transfers and the value transfer of assets on the blockchain,” explains Eric Müller, CEO of Eurex Clearing. “Through the involvement of our CCP as trusted third party, a clear set of rules and governance would be ensured.”

A functional and technical prototype based on Hyperledger Fabric is currently being developed and a patent application has been filed. Deutsche Börse says it will consult with clients, regulators and central banks to obtain feedback on the concept.

Exchange chief Carsten Kengeter last week described blockchain processes as "a true quantum leap" for the industry, vowing to put the technology front and centre of the group's plans toward the creation of an 'Exchange 4.0'.

Recent activities of Deutsche Börse Group in the blockchain area include co-operation with international central securities depositories on the use of distributed ledgers and smart contracts for mobilising scarce collateral, as well as the joint development of a functional prototype for the blockchain technology-based settlement of securities with Deutsche Bundesbank.foremost.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Deutsche Bourse turns to fintech partners to build 'Exchange 4.0'

Deutsche Bourse turns to fintech partners to build 'Exchange 4.0'

18 January 2017  |  8294 views  |  1 comments | 25 tweets | 19 linkedin
CSDs aim to build distributed ledger for mobilising scarce collateral

CSDs aim to build distributed ledger for mobilising scarce collateral

18 January 2017  |  4760 views  |  0 comments | 7 tweets | 6 linkedin
Deutsche Börse partners Naga Group to build gaming marketplace

Deutsche Börse partners Naga Group to build gaming marketplace

01 December 2016  |  4184 views  |  0 comments | 4 tweets | 4 linkedin
Deutsche Bundesbank and Deutsche Börse test blockchain tech for securities settlement

Deutsche Bundesbank and Deutsche Börse test blockchain tech for securities settlement

28 November 2016  |  7786 views  |  0 comments | 15 tweets | 23 linkedin
Deutsche Börse looks to tap PSD2 potential with figo stake

Deutsche Börse looks to tap PSD2 potential with figo stake

23 November 2016  |  6809 views  |  0 comments | 11 tweets | 12 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit abe-eba.euVisit capgemini.com

Top topics

Most viewed Most shared
French retailer Carrefour launches online bank accountFrench retailer Carrefour launches online...
57146 views comments | 15 tweets | 35 linkedin
European Commission opens public consultation on fintechEuropean Commission opens public consultat...
8675 views comments | 42 tweets | 25 linkedin
Can banks really win in the payments business of the future? – new Finextra reportCan banks really win in the payments busin...
8552 views comments | 23 tweets | 37 linkedin
Westpac wants to take over your messaging keyboardWestpac wants to take over your messaging...
7094 views comments | 4 tweets | 10 linkedin
SecureKey taps IBM to put identity on the blockchainSecureKey taps IBM to put identity on the...
6994 views comments | 22 tweets | 15 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job