Deutsche Bundesbank and Deutsche Börse have successfully completed the performance tests of their jointly specified prototypes for securities settlement based on blockchain technology. The prototypes support the settlement of securities transactions, payments, interest payments and repayments at the maturity of a bond. It was developed on both Hyperledger Fabric (version 1.0) and the Digital Asset Platform and subjected to demanding performance tests.
The tests showed that both prototypes are suitable for the productive operation of a realistic financial market infrastructure and can serve as a basis for further development. Both the Digital Asset Platform and the Hyperledger Fabric have had subsequent releases which may even improve the performance.
‘During this project, Deutsche Bundesbank and Deutsche Börse learned a lot about the usage of this technology and its concrete implementation. We expect the rapid development to continue, and also see the potential in using it for high-volume applications. The approach of a permissioned architecture, which takes into account the requirements of the financial sector from the outset, has proven to be right,’ said Burkhard Balz, Member of the Executive Board of Deutsche Bundesbank.
Berthold Kracke, CEO of Clearstream Banking AG and Head of Clearstream Global Operations at Deutsche Börse Group, said ‘We are very happy with the results of the project. The tests have shown that blockchain technology is a suitable basis for applications in the field of settlement and other financial infrastructures. Thanks to the cooperation with Deutsche Bundesbank and the expertise of Digital Asset, we were able to tailor the product to the needs of the industry.’
The blockchain-based prototypes are a result of a collaborative research project between Deutsche Börse and the Deutsche Bundesbank to undertake blockchain based settlement technology research (in short: BLOCKBASTER). You can find the essential results of the project in the joint publication ‘BLOCKBASTER, Final Report’ under the following link.
About Deutsche Börse Group
Deutsche Börse Group is one of the largest exchange organisations worldwide. It organises markets characterised by integrity, transparency and safety for investors who invest capital and for companies that raise capital – markets on which professional traders buy and sell equities, derivatives and other financial instruments according to clear rules and under strict supervision. Deutsche Börse Group, with its services and systems, ensures the functioning of these markets and a level playing field for all participants – worldwide.
About Deutsche Bundesbank
The Deutsche Bundesbank is the independent central bank of the Federal Republic of Germany. It has formed part of the Eurosystem since 1999, sharing responsibility with the other national central banks and the European Central Bank for the single currency, the euro. Eurosystem monetary policy is the Bundesbank’s core business area. Its main task is to secure monetary stability in the euro area. In addition, the Bundesbank performs other key tasks at both the national and international level. Amongst these is ensuring the smooth functioning of domestic and foreign payments.