German market Deutsche Borse has release a new blockchain aimed at processing bank transfers in the commercial sector via a distributed ledger.
The proof-of-concept model will work in conjunction with the exchange’s clearing house, Eurex Clearing, to aid the recording and processing of transactions, in a move that it hopes could revolutionize commercial banking in the near future.
Filing a patent for the technology, the company said it remains a work-in-progress, with continuing development efforts in conjunction with other industry partners slated for the months ahead.
Known as CollCo, or Collateralized Coin, the project represents a significant step forward in developing viable use cases for the blockchain technology. By working seamlessly with the existing clearing infrastructure, Deutsche Borse has said the system could allow for significant developments in processing peer-to-peer payments.
“All peer-to-peer payments based on tokenized commercial bank money are accompanied by movements of collateral between the respective Eurex Clearing members using the (counterparty’s) functionality and rules.”
Having worked extensively on developing blockchain technologies in recent months, the new blockchain comes as the result of ongoing improvements in blockchain understanding and development. Following on from a partnership with the German central bank and private-sector funders, the company appears to be edging closer to significant advancements through the blockchain.
Beyond the proof-of-concept model announced, the firm is now eyeing a number of other applications for the technology, including handling margin, reducing credit risk in transactions, and other improvements in transferring funds.
The move comes at a time of significant development for the market operator, as it continues to explore new technologies surrounding the blockchain. Carsten Kengeter, CEO of Deutsche Borse, spelled out the company’s plans for the next generation of its infrastructure.
“Exchange 4.0 will use blockchain intelligently. Exchange 4.0 will convert data into investment tools ... Finally, Exchange 4.0 will be as varied — and perhaps also as easy to use — as an app store.”
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