Boerse Stuttgart Pioneers Blockchain Settlement in ECB Trials, Slashing Transaction Times
In a significant stride towards the digitalization of European capital markets, Boerse Stuttgart Group (BSG) has successfully completed blockchain-based securities settlement tests as part of the European Central Bank’s (ECB) explorations. The trials, conducted in collaboration with six major German banks, demonstrated a dramatic reduction in settlement times from two days to mere minutes.
The tests involved transactions with five tokenized securities, including bonds, funds, and shares, utilizing BSG’s innovative blockchain-based settlement solution. This system was integrated with the Deutsche Bundesbank’s trigger solution, effectively linking it to the traditional euro payment system.
Dr. Matthias Voelkel, CEO of Boerse Stuttgart Group, emphasized the transformative potential of this technology: “Blockchain technology is a game changer for the digitalization of the European capital market. With the successful completion of the ECB blockchain tests, we have taken an important step in the EU.”
The trials showcased the interoperability between blockchain and central bank money, demonstrating that settlement processes can be automated efficiently and securely between trading participants without counterparty risk. This breakthrough could lead to significant cost savings for investors and financial institutions.
Notably, BSG’s approach went beyond single-transaction testing, encompassing various scenarios and conditions to provide a comprehensive evaluation of the technology’s capabilities. The exchange’s broker, EUWAX AG, and its crypto custodian, Boerse Stuttgart Digital Custody, also participated in the tests, further validating the system’s robustness.
Looking ahead, BSG plans to implement this blockchain-based settlement solution in its Swiss tokenized securities exchange, BX Digital, set to launch in 2024. This move positions Boerse Stuttgart at the forefront of European capital market innovation, potentially reshaping the landscape of financial transactions.
