German securities marketplace Deutsche Boerse and Swiss state-run telecom Swisscom take settled securities transactions using different blockchain protocols. In a articulation proof-of-concept (PoC) involving a number of banks, the participants exchanged money in the form of cash tokens against tokenized shares, Deutsche Börse officially appear on Nov. 19.

Based on blockchain applied science, the joint PoC intends to testify the potential of new technologies in the financial services sector and maintain Germany and Switzerland's expertise in the digital nugget ecosystem.

3 major Swiss banks participated in the PoC

The PoC involved major Swiss banks, including the fourth-largest Swiss bank Zuercher Kantonalbank, investment banking concern Vontobel and Falcon Individual Bank. These banks were acting as counterparties and exchanged securities tokens against greenbacks tokens, the printing release notes.

The central banking concern of Switzerland, the Swiss National Bank, likewise indirectly participated in the PoC as the cash tokens were deposited as collateral in Eurex Clearing'southward account in the bank. The cash tokens in Swiss francs were provided past Deutsche Boerse.

Corda and Hyperledger were used for cross-chain secure settlement

In order to process cash and security tokens, the participants were deploying 2 different distributed ledger technology (DLT) protocols — R3'due south Corda and Hyperledger Fabric — to consummate cantankerous-chain secure settlement.

Other participants of the PoC included Swiss blockchain house daura and Custodigit, a joint custodial venture by Swisscom and Sygnum. The firms provided core elements of the digital share registry for the PoC, Deutsche Börse noted.

The new initiative by Deutsche Borse and Swisscom is another milestone in the existing blockchain-related collaboration of the companies. Earlier this year, Deutsche Borse Group and Swisscom partnered with Singapore-based fintech firm Sygnum to develop compliant financial market infrastructure for digital assets.