DZ Bank, one of Germany’s largest, pilots promissory note blockchain

Four German banks, DekaBank, dwpbank, DZ BANK and Helaba, have collaborated to create the finledger blockchain platform for promissory note loans. Promissory notes are a major instrument used in trade, where exporters grant extended credit terms to importers. The exporter usually sells the note to a bank at a discount to get faster payment. DZ Bank is Germany’s second-largest bank by assets, though not by revenues. It’s a central organization for roughly 900 cooperative banks in Germany which own the company. The finledger group observed that there are existing digital solutions for structuring and placing promissory notes. However, the new blockchain offering digitizes the entire process, including trade confirmation and document generation. There are plans to extend it to the full lifecycle such as assignment and termination.

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