The suc­cess­ful proof of con­cept, which has been joint­ly designed and devel­oped by Deutsche Börse and Swiss­com, aims to improve post-trade services/ set­tle­ment of secu­ri­ties trans­ac­tions using dif­fer­ent dis­trib­uted ledger tech­nol­o­gy (DLT) pro­to­cols. The three part­ners Fal­con Pri­vate Bank, Von­to­bel and Zürcher Kan­ton­al­bank helped in cre­at­ing the proof of con­cept to tok­enize trans­ac­tions of securities.

The tok­eniza­tion process includes the dig­i­tal­iza­tion of shares by trans­fer­ring them into a dig­i­tal reg­is­ter through the use of the start-up com­pa­nies plat­form dau­ra. The banks involved in the tri­al exchanged secu­ri­ties tokens against cash tokens using DLT protocols.

Some of the ben­e­fits include:

• Increase in speed and the effi­cien­cy of post-trade services.
• Imme­di­ate and secure set­tle­ment of legal­ly bind­ing secu­ri­ties trans­ac­tions in shares.
• This con­cept has the poten­tial to reach glob­al investors. 

BMCP is excit­ed to see rather tra­di­tion­al com­pa­nies become more and more dig­i­tal, as a one-stop agency for tok­eniza­tion we are thrilled to see oth­er large insti­tu­tions imple­ment­ing tok­eniza­tion to improve and inno­vate the finan­cial ser­vices sector.