Börse Stuttgart, ECB cut settlement time with blockchain test
The Börse Stuttgart Group, the second largest exchange in Germany, has completed testing secondary market transactions using blockchain technology in cooperation with the European Central Bank (ECB).
According to a press release shared with Cointelegraph, this development marks the group's first “fixation of exchange transactions of blockchain-based securities against central bank money.”
“The settlement solution was linked to Deutsche Bundesbank's trigger solution and the traditional euro payment system.
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Settlement with token
The test was conducted as part of the ECB's exploration of blockchain technology and involved six partner banks: Commerzbank, Deutsche Bank, DZ Bank, LBBW, Bankhaus Metzler and V-Bank.
Using the Börse Stuttgart Group's blockchain-based settlement solution, the institutions tested various transactions involving five tokenized securities such as bonds, funds and stocks.
Focused on the “interaction between blockchain and central bank money”, settlement time has been reduced “from two days to a few minutes”.
The tests show that the settlement processes can be automated in a step-by-step and direct way between the business participants – efficiently, safely and without risk.
Related: Germany seizes 47 crypto exchanges linked to ‘underground economy'
Implications of the digital market
The pilot project explored individual cases and multiple transaction scenarios to provide a broader assessment of blockchain technology in real-world market conditions.
The tests simulated normal operating environments, including specific cases, to provide sufficient insight into the reliability of blockchain integration in digital markets.
In addition to the Börse Stuttgart crypto custody service, German brokerage Euwax contributed to the trial findings and the ECB to the evaluation of blockchain applications in capital market transactions.
Related: Greens' push for German cryptocurrency tax exemption sparks debate
DZ Bank merger
On September 19, Dizzy Bank partnered with Börse Stuttgart Digital to integrate the group's regulatory infrastructure and technical components for the bank's new crypto services.
Börse Stuttgart Digital facilitates the operational divisions of DZ Bank. The first banks are planned to meet at the end of 2024.
The collaboration will enable customers of nearly 700 partner banks under the DZ Bank umbrella to access their retail customers' digital assets.
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