Today Commerzbank
announced a successful Proof of Concept (PoC) transaction that involved tokenizing both cash and securities for a repo transaction. The simultaneous exchange of cash tokens for securities tokens enabled “delivery versus payment” or instant settlement.
The PoC involved a repo transaction where typically banks that require short term cash, borrow it by selling securities which act as collateral and agree to repurchase them in the near future. In the PoC Commerzbank sold securities to Deutsche Börse which provided the cash. Two weeks ago Commerzbank executed another blockchain money market transaction with
Continental and Siemens.
“In past pilots we have focused on new issue projects,” said Michael F. Spitz, CEO of main incubator, the R&D unit of the Commerzbank Group. “With the transaction between Deutsche Börse and Commerzbank we were now for the first time able to convert existing securities into digital tokens.”
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