One of the world's largest securities depositories, the Euroclear Group, together with the European Investment Bank (EIB), Banco Santander and EY have developed a comprehensive blockchain solution for the issue and settlement of European commercial papers (ECP).
According to the press release , the proposed blockchain solution will reduce the lengthy processing of transactions between several market participants. Another key benefit will be full transparency and traceability of actions related to ECP, reduction of operating costs and time. This will make the release of ECP on the same day a new market standard, the statement stressed.
The partners completed a “proof of value” (proof of value) for blockchain solutions and, as a representative of Euroclear, “inspired by the innovative possibilities” created by the new technology.
“This proof of value once again confirms the potential impact of blockchain technology on the issue of securities, where there is a huge opportunity to improve efficiency, reduce time to market and improve practices for issuers and investors ,” said Banco Santander, head of digital investment banking, John Whelan (John Whelan).
After the initial successes of the initiative, Euroclear intends to move on to the pilot phase in the near future. Other institutions issuing ECPs have shown interest in the project, they will be invited to participate in the subsequent pilot phase.
Recall that earlier Banco Santander joined the new European Commission initiative in the field of distributed registry technology – the International Association for trusted blockchain applications (IATBA).
Also, the Spanish bank, in partnership with Ripple, launched an international payment service based on the xCurrent blockchain solution, participates in the DLT trading financing platform we.trade and participates in testing the Interbank Information Network for interbank payments created by JPMorgan based on the new technology. Banco Santander was one of the founders of Fnality International, which will commercially implement the Utility Settlement Coin (USC) interbank payment token project.
Publication date 19/06/2019
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