Commerzbank, Credit Suisse and UBS began transactions of a loan of securities on a blockchain

At the beginning of December, 2019 the largest banks Commerzbank, Credit Suisse also UBS performed the first operations through blockchain- the platform of the safe securities lending from Deutsche Börse and HQLAX management company. The platform works at a blockchain Corda R3.

The successful project startup was confirmed by Deutsche Börse company which also reported that transactions were executed in the Eurex Repo F7 trading system. UBS Swiss Bank and German bank Commerzbank exchanged the property right to bonds, and Clearstream Banking acted as the entrusted keeper of securities. Physical documents did not participate in the transaction as all information was written in the digital register.

The largest banks Commerzbank, Credit Suisse and UBS performed the first operations through a blockchain platform of the safe securities lending from Deutsche Börse and HQLAX management company

The listed bank corporations cooperate with Deutsche Börse and HQLAX from the very beginning of the project. In total 18 large banks, including CIBC, Citi, Goldman Sachs and ING took part in it. It is supposed that J. P. Morgan can also become one of third-party agents, along with Clearstream Banking and Euroclear Bank.

Start of the HQLAX system showed advantages of DLT when using in the industry of finance. Our project shows that the latest technologies can successfully be combined with reliable market infrastructure and should be applied in lending market and securities. We hope and to cooperate with HQLAX company fruitfully further, - Jens Hachmeister, the head of department of Deutsche Börse market development told.

The CEO of HQLAX Guido Stroemer highly appreciated the deposit Deutsche Börse corporate a blockchain company of R3 and the first project participants. He explained that the new model "was developed by the market for the market". Leading of a regulatory framework was the most difficult stage, according to Stroemer.^[1]

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