Spanish bourse BME has completed tests of the use of blockchain technology to eliminate the exchange of physical certificates for collateral pledges.
The concept was conceived and nurtured by BME’s DLT-Lab, established to explore potential innovations in capital markets processing through the use of blockchain technology.
Berta Ares, head of digital transformation, BME, says: “DLT technology allows us to reduce times drastically and improve the operation and control of the system, providing legal certainty for electronically generated certificates and maintaining privacy and compliance with the General Data Protection Regulation”.
He adds that BME and Renta 4 Banco will keep working on the developments necessary to allow the system to go live by the end of 2019.
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