Boerse Stuttgart has announced the successful testing of blockchain-based securities settlement against central bank money, demonstrating a dramatic reduction in settlement times from days to mere minutes.
The exchange operator conducted trials involving six banks and the Bundesbank as part of the European Central Bank’s (ECB) wholesale blockchain settlement initiative. Participants included Commerzbank, Deutsche Bank, DZ Bank, LBBW, Bankhaus Metzler, and V-Bank, all connected to Boerse Stuttgart’s blockchain settlement solution. This system was also integrated with the Deutsche Bundesbank’s trigger solution, linking it to the traditional euro payment framework.
During the trials, a variety of transactions involving five tokenized securities—ranging from bonds and funds to shares—were carried out, emphasizing the interoperability between blockchain technology and central bank money.
Boerse Stuttgart’s tests revealed that settlement processes could be executed automatically, step by step, directly between trading participants in a manner that is efficient, secure, and free from counterparty risk. The impressive outcome saw settlement times cut from two days down to just a few minutes.
Matthias Voelkel, CEO of Boerse Stuttgart, remarked, “Blockchain technology is a game changer for the digitalization of the European capital market. We at Boerse Stuttgart Group are pioneers in this field. With the successful completion of the ECB blockchain tests, we have taken an important step in the EU.”