Bolsas y Mercados Españoles (BME), a major Spanish stock exchange operator, has completed its first blockchain pilot for electronic certificates of collateral pledges.

According to a report by Cointelegraph, the new pilot intends to eliminate the use of physical certifications by digitizing all processes and providing network participants with real-time access to data, implemented along with Renta 4 Banco, the only investment services firm listed on the BME.

The Proof-of-Concept (PoC) for the pilot involved the release of collateral pledged by Renta 4 Banco in order to cover customer’s positions at BME’s central counterparty, BME Clearing.

An official press release published in March stated that the implementation of the blockchain-backed pilot allowed parties to reduce total processing time by over 80%.

The PoC was developed by DLT-Lab, a BME division that researches the use of blockchain technology in improving existing financial processes in partnership with regulators and financial institutions.

For the pilot, DLT-Lab worked with the relevant infrastructures and BME subsidiaries BME Clearing, Spanish central securities depository Iberclear, and Renta 4 Banco.

According to the release, both BME and Renta 4 Banco will continue working on the initiative to officially launch the new system by the end of 2019.

Berta Ares, head of Digital Transformation at BME, stressed that distributed ledger technology (DLT) enables involved parties to reduce operating times as well as provide legal certainty for e-certificates, while also maintaining privacy and compliance.

BME previously took part in a joint blockchain project to record the issuance of financial warrants. The initiative involved eight major European financial institutions, including Spanish securities regulator the National Securities Market Commission, BBVA, BNP Paribas, and CaixaBank.

Source: cointelegraph.com

About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

• Telegram: https://t.me/asiablockchainreview
• Facebook: https://www.facebook.com/pg/asiablockchainreview
• Twitter: https://twitter.com/abr_blockchain
• LinkedIn: https://www.linkedin.com/company/asia-blockchain-review/
• Website: https://www.asiablockchainreview.com/
• Email: [email protected]
• Youtube: https://www.youtube.com/channel/UCMQ5CVu0c9-pMlwB8LUvkiA