Blockchain technology in the financial sector remains an intriguing proposition. Germany’s central bank has recently completed its DLT-based settlement trial. Together with Deutsche Bourse, the end result is rather promising. It is unclear if this technology in a future stage.

Various banks and other financial institutions are looking for ways to incorporate blockchain technology. Although its exact use cases remain unclear at this time, successful trials often give a hint of what the future may hold. In Germany, blockchain settlement seems to be the next frontier waiting to be tackled. A successful trial between Deutsche Bundesbank and Deutsche Bourse confirms DLT has plenty of potential in this department.

Another Successful DLT Trial in Germany

This technology uses Hyperledger’s Fabric and the Digital Asset platform. A prototype has been developed over the past two years. Its main purpose revolved around creating a sandbox environment to test blockchain-based securities settlement. It appears this trial has been rather successful in many different ways.

Deutsche Bundesbank’s Burkhard Balz adds:

“During this project, Deutsche Bundesbank and Deutsche Börse learned a lot about the usage of this technology and its concrete implementation. We expect the rapid development to continue, and also see the potential in using it for high-volume applications. The approach of a permissioned architecture, which takes into account the requirements of the financial sector from the outset, has proven to be right.”

For the time being, it remains to be seen what comes next. There is no official indication this infrastructure will be commercialized. Additionally, the advantages over centralized systems have yet to be documented accordingly. As such, there is no real course of action in place, which is not entirely abnormal.


About Author

JP Buntinx is a 30-year old FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he is working to achieve the same level of respect in the FinTech sector.

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