DekaBank, Deka Investment, Hauck & Aufhäuser and Comyno, as the accompanying software and consulting company, executed the first securities lending transactions on a blockchain-based settlement system for securities in Q4 2020. In total, transactions with an equivalent value of over EUR 300 million have been settled on the Digital Collateral Protocol (DCP) between DekaBank, client Funds and Hauck & Aufhäuser.
Security settlements, and cross-border settlements in particular, can be error-prone, time consuming and expensive. However, securities are settled directly on the DCP without tokenization and within minutes in legally effective constructs.
While the first transactions were completed with traditional securities, digital securities and digital financial instruments are in the future. The group is working on bringing digital securities onto the DCP in a next step. New digital securities, traditional securities and digital financial instruments could then be processed on the same protocol.
The group aims to develop the DCP into a new settlement standard as a market initiative together with several banks and infrastructure providers. These first transactions are thus a very important milestone in the implementation of the DCP’s overall vision.
For more information:
Introducing the Digital Collateral Protocol: the right blockchain for global settlements, Michael Cyrus, Securities Finance Monitor, April 30, 2020
Deka startet Blockchain-Plattform, Sparkassen Zeitung, January 22, 2021 (in German)