In a recent interview, Stefan Teis, SVP, Group Business & Product Development at Deutsche Börse provided an update on the status of ongoing projects based on distributed ledger and blockchain technologies.
One project is with the German central bank for the settlement of digital bonds against digital cash. The first phase was completed at the end of 2016 and it’s now in the second phase, with the prototype put to a performance test. This serves to verify whether blockchain technology is mature enough to process the standard market volumes, which are high. Teis said he expected the first results in the second quarter of 2018.
Another is LA Ledger, which aims at developing a blockchain solution for the cross-border transfer of collateral. There is already a prototype available online for potential clients and partners to use for simulations. Deutsche Börse is currently talking to clients and regulators and obtaining legal assessments.
The Collateralized Coin Project is at a similar stage. It is a concept for a collateralized digital currency, which enables payments in bank money on the blockchain, with settlement ensured through a clearinghouse. Eurex Clearing recently published an internal feasibility study examining risk management, process implementation, and legal questions. The study concludes that the project should be carried forward.