14 December 2017
visit www.solutions.lexisnexis.com

Commerzbank completes money market transaction over R3 Corda

25 September 2017  |  9896 views  |  0 Commerzbank building signage

Germany's Commerzbank has hailed the potential of blokchain technology for money market trades, having successfully replicated a EUR100,000 Euro Commercial Paper transaction with a limited number of trading partners.

The security, comprising a €100,000 issuance volume with a five-day term, was sold to asset management group MEAG, and settled without a paying agent or a clearing system.

The pilot transaction is one of the outcomes of a two-year exploration of the potential of smart contracts and distibruted ledger technology conducted with R3's Corda platform.

Roman Schmidt, corporate finance director at Commerzbank, says the option of immediate securities settlement may offer significant benefits in terms of freeing up capital and reducing the number of intermediaries required to process a transaction.

"The pilot transaction has demonstrated that the issuing as well as the trading of securities can be simulated in real time via blockchain technology," he says. "Transforming securities transactions into digital issues may open up significant potential for efficiency gains."

Nonetheless, it will take another few years before the platform can be decreed "market ready", he adds, with adjustments to the regulatory and legal framework and reporting interfaces all needing a makeover to accommodate the technology.

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

Commerzbank steps up focus on trade finance transformation

Commerzbank steps up focus on trade finance transformation

04 July 2017  |  11955 views  |  0 comments | 9 tweets | 13 linkedin
Commerzbank creates corporate transformation programme

Commerzbank creates corporate transformation programme

10 January 2017  |  12016 views  |  0 comments | 4 tweets | 13 linkedin
Commerzbank plans job cuts and digitalisation to boost profits

Commerzbank plans job cuts and digitalisation to boost profits

30 September 2016  |  9325 views  |  0 comments | 14 tweets | 13 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.atos.netvisit www.response.ncr.com

Top topics

Most viewed Most shared
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
10073 views comments | 16 tweets | 25 linkedin
satelliteRipple completes XRP Lockup
8786 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
8782 views comments | 17 tweets | 36 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
7533 views comments | 20 tweets | 11 linkedin
Brits flock to digital-only banksBrits flock to digital-only banks
7161 views 11 comments | 11 tweets | 15 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job