Today Clearstream announced that LBBW and Vontobel have issued digital securities on the Deutsche Börse D7 platform. Clearstream is Deutsche Börse’s post-trade service provider, and D7 is its new digital post-trade platform.
In mid-2021, Germany passed its eWpG legislation supporting digitally native electronic securities. Under the law, securities registration can either be central or decentralized using blockchain. Today’s issuances are centrally registered securities, following the launch of D7 last year, which started by providing a digital central securities depositary. That’s because existing securities can be digitally represented.
The orchestration uses the DAML smart contract language, even though blockchain is not yet supported. Clearstream said that “digital instruments are smart objects that represent electronic securities”. They have all the necessary data for automation, enabling straight-through processing. In turn, this should minimize the need for reconciliations.
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