Today, Commerzbank
announced that it has completed a test using distributed ledger technology (DLT) for post-trade services. The bank, along with exchange Deutsche Börse and asset manager MEAG, settled a securities transaction with blockchain-based tokens. Commerzbank then used these cash tokens as collateral with central counterparty Eurex Clearing.
The parties hope to explore the potential for DLT in post-trade with tokenization. Eurex Clearing tokenized the cash, while Commerzbank was the seller and custodian of the tokenized securities. MEAG, Munich Re and ERGO’s asset management firm, bought the securities. Deutsche Börse and Commerzbank provided the underlying blockchain technology.
The bank and exchange jointly designed the system, which was first used in March. Back then, Deutsche Börse and Commerzbank completed a
tokenized repo transaction. They simultaneously exchanged cash and securities tokens.
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