BME and Renta 4 Banco test blockchain for collateral pledge
15 March 2019 Madrid
Image: Shutterstock
The Spanish stock exchange, BME and Renta 4 Banco have carried out the first test for the digitisation of the certification process of collateral pledge, using blockchain technology.
The process eliminated the need to use and exchange physical certificates and showed a reduction in the total times of end-to-end processes exceeding 80 percent.
The proof of concept (PoC) has been fully developed by BME’s distributed ledger technology (DLT)-lab where BME analyses the use of blockchain technology in the digitalisation of processes and new operational models for improving current financial processes. This is in collaboration with the regulators and different financial institutions.
The PoC covered customer’s positions at BME clearing, BME’s central counterparty. Spanish central securities depository, IBERCLEAR, was also involved in the PoC.
BME and Renta 4 Banco expect the system to go live by the end of 2019.
Berta Ares, head of digital transformation at BME, said: "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.”
Teresa Sánchez Alonso, head of IT systems at Renta 4 Banco, commented: "This innovation project is aligned with the strategy of digitisation, automation and continuous improvement of Renta 4 Banco’s customer service.”
The process eliminated the need to use and exchange physical certificates and showed a reduction in the total times of end-to-end processes exceeding 80 percent.
The proof of concept (PoC) has been fully developed by BME’s distributed ledger technology (DLT)-lab where BME analyses the use of blockchain technology in the digitalisation of processes and new operational models for improving current financial processes. This is in collaboration with the regulators and different financial institutions.
The PoC covered customer’s positions at BME clearing, BME’s central counterparty. Spanish central securities depository, IBERCLEAR, was also involved in the PoC.
BME and Renta 4 Banco expect the system to go live by the end of 2019.
Berta Ares, head of digital transformation at BME, said: "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.”
Teresa Sánchez Alonso, head of IT systems at Renta 4 Banco, commented: "This innovation project is aligned with the strategy of digitisation, automation and continuous improvement of Renta 4 Banco’s customer service.”
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