Börse Stuttgart Group, Germany’s second-largest exchange, has successfully completed blockchain-based testing for secondary market transactions in collaboration with the European Central Bank (ECB). The test, involving six major banks—including Commerzbank and Deutsche Bank—demonstrated that settlement times for tokenized securities, such as bonds and shares, could be reduced from two days to just minutes.

This pilot project, part of the ECB’s broader exploration into blockchain technology, focused on integrating blockchain-based securities with central bank money through the Deutsche Bundesbank’s trigger solution. The tests showcased how settlement processes could be fully automated, improving efficiency and reducing counterparty risk.

The initiative underscores the potential of blockchain technology to enhance digital market transactions and is part of a broader effort to integrate blockchain in capital markets. DZ Bank’s recent partnership with Börse Stuttgart Digital further solidifies this trend, aiming to provide digital asset access to approximately 700 banks by the end of 2024.

Source: cointelegraph.com

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