The largest exchange operator in Spain Bolsas y Mercados Españoles (BME), completed the experiment for transfer on the blockchain of certificates of mortgage obligations.
A proof of concept (PoC) was conducted jointly with the company Renta 4 Banco. During the experiment, the parties renounced the use of physical certificates by digitizing all the processes and provide all network members access to data in real-time.
PoC consisted in the formation and release of the electronic certificate of collateral security, promised Renta 4 Banco, to cover the client’s positions in BME Clearing is the Central counterparty, BME.
According to a press release, in the experiment the parties through the use of the blockchain has managed to reduce the total processing time of operation more than 80%.
“Blockchain technology allows us to dramatically reduce the time and improve the work and control system, providing legal certainty for electronic certificates, as well as maintaining confidentiality and compliance with the General rules of data protection”, — said the head of the Department of digital transformation BME Ares Berta (Berta Ares).
The pilot project was fully developed by a division of BME DLT-Lab, which explores the use of the blockchain for improvements to existing financial procedures in cooperation with the regulatory authorities and various financial institutions. To develop PoC blockchain-division BME worked with the infrastructure involved in the process, BME Clearing, the Spanish Central securities Depository Iberclear and Renta 4 Banco.
BME and Renta 4 Banco plan to continue work on the DLT-an initiative with the aim to officially launch the new system before the end of 2019.
Recall that the largest stock exchange Switzerland SIX Digital Exchange (SDX) intends to launch a blockchain-based platform to accelerate the auction by the end of the year. The Australian stock exchange (ASX) and Singapore exchange (SGX) is developing a new settlement system based on the technology of the distributed registry. The largest German exchange operator Deutsche Börse is testing a similar system in cooperation with Deutsche Bundesbank.