German Central Bank has Developed a Blockchain Based Prototype Securities Trading System

As the impact of blockchain continues to be felt throughout the financial sector, the German central bank, the Bundesbank, recently announced that it has developed a functional blockchain prototype that trades securities. Developed in partnership with the German Stock Exchange, the Deutsche Börse, it claims the platform is more efficient than traditional standards.

While the prototype system is far from ready, the two organisations have been researching and developing this technology for quite some time. The plan is to further develop the distributed ledger prototype throughout the coming year with a focus on analysing the technical benefits and scalability of the software.

“With the blockchain prototype, the Deutsche Bundesbank and Deutsche Börse want to work together to find out whether this technology can be used for financial transactions, and if so, how this can be achieved,” explained Carl-Ludwig Thiele, Member of the Deutsche Bundesbank’s Executive Board.

“Deutsche Bundesbank hopes that this prototype will contribute to a better practical understanding of blockchain technology in order to assess its potential.”

News about the blockchain platform follows the central bank hosted four-day blockchain workshop event called “Blockchain Technology – Opportunities and Challenges.” (see our post: German Central Bank Hosts Blockchain Conference and Workshop)

Carsten Kengeter, CEO of Deutsche Börse AG said the two groups are addressing

“potentially radical technological opportunities.” “We will continue to do our utmost to leverage blockchain’s efficiency potential and to better understand and minimise the associated risks of this technology,” he added.

Currently, the project boasts blockchain-based security transfers that offer both immediate and delayed payment structures. The framework is designed for identity and regulations with Hyperledger Project architecture. The German prototype aims to create a more cost-efficient and stable environment for securities of all kinds.

Photo credit: Material used in the preparation of this article has been drawn from

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