Deutsche Borse on cusp of new era with blockchain
To deliver on Deutsche Börse Group’s ambition, the capital markets company, considers blockchain and distributed ledger technology as integral to its ambition and future success as it launches a new division to develop a group-wide approach.
The new initiative called DLT, Crypto Assets and New Market Structures consists of 24 members and is spearheaded by Jens Hachmeister, who explains the importance of blockchain in both the Group’s strategy and to financial markets infrastructure. He offers in a company blog that the technology provides opportunity to create new market structures, as well as adding new products onto current structures and enhancing existing offerings.
And added, “Looking at the pace of technological progress and the transformational potential that lies in blockchain, we probably stand at the beginning of a new era that could be disruptive for the whole industry. The challenge is that we don’t exactly know where this will lead to. The possibilities this new technology offers, are fascinating.”
One of four technologies
The company is looking to expand internationally and plans a three-prong strategy that includes investments in distributed ledger technology/blockchain and three other emerging key technologies: cloud, big data & analytics and robotics & artificial intelligence.
Deutsche Börse has been actively exploring the technology and ideas for opportunities are fulsome, Hachmeister said: “We see that several market offerings based on DLT/blockchain technology cut across the Group’s value chain already, challenging our traditional market infrastructure – for example equity funding innovations through initial coin offerings (ICOs), decentralised secondary market platforms, or blockchain-based custody solutions just to name a few.”
In addition, it has also worked with global securities depositories for using smart contracts to mobilise scarce collateral and recently announced a partnership with HQLAx, the collateral management firm which has developed a blockchain-powered operating model for securities lending.