Rabobank has completed a series of pilots executing more than €2 billion in commercial paper transactions. These pre-production transactions were executed on the Ubermorgen issuance platform, which leverages blockchain. A third participant is TreasurySpring, which helps to make commercial paper issuances available to investors. Global asset managers were also involved in the trials.
This is the latest demonstration of the advantages of DLT for intraday transactions and settlement efficiency. Typically it takes two days (T2) to settle commercial paper transactions. For short term commercial paper, that’s not ideal.
Ubermorgen supports T0 settlement, and it’s possible to agree on a specific time window for settlement. Other DLT benefits are the efficiency of automation and transparency around the process.
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