Deutsche Börse Group has partnered with HQLAx in order to create a securities lending platform using R3’s Corda Blockchain platform.
March 27 update: Deutsche Börse has announced that it will not work with Bitcoin companies and startups while implementing its Blockchain platform, Cointelegraph auf Deutsch reported on Monday, March 26.
The main reason for this, according to the securities exchange, is the strong volatility frequently experienced by the cryptocurrency Bitcoin. Jeffrey Tessler, Deutsche Börse Board Member, told the Handelsblatt newspaper:
"Nobody knows what the future of cryptocurrencies looks like. But if the price drops from $ 19,000 to $ 6,000, it shows that Bitcoin is not a stable currency”.
Original article: Deutsche Börse Group, a German marketplace for securities trading, will release a Blockchain-based platform for securities lending in collaboration with HQLAx using R3’s Corda Blockchain platform, the company announced in a press release today, March 26.
Finance Magnates writes that the partnership will create a “fully integrated front-to-back operating model” in order to “facilitate more efficient collateral management of high-quality liquid assets.”
According to Philippe Seyll, the Executive Manager at Deutsche Börse Group, the collaboration between the German securities trading exchange and HQLAx will be able to: “address some of the major issues in today’s securities lending markets through innovate means.”
“With the creation of a neutral custody agnostic control layer, Deutsche Börse is embracing distributed ledger technology and complements it with a neutral and trusted market infrastructure role open to multiple custodians and collateral agents. This way Deutsche Börse supports market participants to deal with the global regulatory framework whilst reaping the benefits of the leading edge distributed ledger technology.”
At the beginning of March, Credit Suisse and ING completed the first live transaction of securities using the HQLAx Corda-based collateral lending application.