Reuters: KfW uses the block chain to solve the money market problem


nnIn the wake of the rush: Germany’s revival credit bank issued the first euro-based commercial paper based on distributed bookkeeping technology, according to the traditional process of issuing notes simultaneously copied to the block chain, Bitcoar underlying technology to create a decentralized data architecture to become “smart contract” Based on the full realization of the commercial transaction process automation. Can be based on the existing efficiency and benefits, to bring more benefits to the user.n
nTranslation: Annie_Xun
Deutsche Bank (KfW) issued its first euro-based commercial paper based on distributed book technology. The trade pilot is Commerzbank, the Munich Re, Munich-based ERGO Asset Management, and the money market tool sales technical test.n
Despite the regulatory requirements through the traditional process of issuing notes, 100,000 euros of transactions simultaneously copied to the block chain. The decentralized data architecture created by the bottom bank technology is the basis for the “smart contract” and automates the business process.n
KfW bill date is five days, the settlement does not need to pay the agent or the clearing system, with the instant posting instead of the standard two-day settlement period. KfW is the German government’s all development banks.n
KfW Treasurer Frank Czichowski said that digitalization will greatly affect the way financial market transactions and settlement.n
n”The potential of the block chain technology is huge, and this trade pilot allows us to accumulate the initial positive experience, and in the future I predict that settlement speed, transparency and safety standards will benefit.”n
nReal-time securities settlement brings many benefits to money market instruments, especially given its short-term maturity and simple structure. The same day to reduce the risk of settlement, you can ease the pressure on capital, while reducing the number of brokers, thereby further increasing efficiency.n
Commonzbank Corporate Finance Committee member Roman Schmidt said, “the digital trading of securities may be able to open a huge efficiency to enhance the potential.”n
Given the volume of money market instruments, the increase in capital and liquidity will be evident, although these benefits must be met by deepening technical, regulatory and legal adjustments.n
MEK, director of investment control, back-end and IT, said the project allows companies to analyze the impact of block-chain technology on front-end and back-end processes, as well as investor perception of regulation.n
n”The future is a digital business process.Although the potential efficiency of existing processes to enhance and cost-effective is already attractive enough, or have a further development process, to bring additional benefits to customers.”n
nBlock-chain technology uses real-time visualization to transparentize each transaction step and provide a basis for regulatory reporting.n
Pilot transactions on behalf of Commerzbank and other banks to develop an extension of the zoning chain platform. Commerzbank belongs to the R3 Corda Alliance to explore the block chain application of the financial services industry.n
Other organizations are also testing block-chain technology in recent months. In July, Daimler jointly issued 100 million euros of bonds with four savings banks in a block chain, including Landsbank Baden-Wuettemberg. The entire process of the transaction, including initiation, distribution, execution to confirm repayment and interest payments, is performed through the block chain.n
In 2015, the US online retail giant Overstock.com released the world’s first encrypted bond through a capital account-based distributed book platform, T0, a small number of qualified buyers with a small amount of qualified buyers with financing of $ 25 million.n
BlockEx plans to issue the first public offering through the chain chain, while the Swiss exchange group SIX has partnered with Digital Asset Holdings to develop a digital bond issue prototype, but there is no immediate release.n

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