Today the Deutsche Bundesbank and the Deutsche Boerse issued a joint report into using blockchain or distributed ledger technology (DLT) for
collateral management. Institutions have to provide assets in the form of stocks or cash for numerous trading activities. By using DLT, this collateral can be provided faster and is available 24/7.
“From the perspective of the Deutsche Bundesbank, collateral management is fundamentally important for the operational management of monetary policy,” said Burkhard Balz, Executive Board member at the Deutsche Bundesbank. “DLT-based solutions for collateral management have the potential to increase efficiency in this area by improving the availability of collateral.”
Collateral needs to be used in so many places that having it in the right place at the right time becomes a challenge.
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