Zürcher Kantonalbank and Clearstream Execute Blockchain Transaction
- The cross-border fund distribution was made between Switzerland and Luxembourg.
As the adoption of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term in the mainstream financial settlement is increasing, Zürcher Kantonalbank (ZKB) and Deutsche Börse’s Clearstream have processed their first live blockchain-based end-to-end fund transactions.
According to Tuesday’s announcement, the companies used FundsDLT decentralized platform for the transaction.
Based on Ethereum, FundsDLT reengineered the fund distribution value chain, from front to back, covering the entire fund lifecycle. Clearstream became a stakeholder in the project last year along with Credit Suisse.
More and More Blockchain Adoption
Blockchain technology overall is seen as a gamechanger for the financial industry with many advantages over the existing centralized infrastructure. For instance, the transaction processing time from the existing few hours can be trimmed down to a few minutes or even seconds. The consensus-based technology can further add another security layer to the transactions.
For the transaction between ZKB and Clearstream, the distribution of the investment fund took place between Switzerland and Luxembourg. The order was captured and delivered to Clearstream’s fund processing platform Vestima via the blockchain.
Commenting on the use of new technology, ZKB’s Head of Digital Asset Solutions, Peter Hubli said: “The proof of value allowed us to have a sneak peek into the future of the fund industry, its potential and impact not only for ZKB, but also for our clients and partners. By leveraging blockchain technology, we get both an overview of the entire flow of assets and money and can also identify and understand investor's needs.”
“It is important that our customers can Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term the advantages of blockchain starting today, with access to a large investment funds portfolio via proven, regulation-compliant and safe fund processing environments,” Bernard Tancré, Head of Investment Fund Services Products at Clearstream, said.
“This initiative significantly increases operational efficiency for investors, distributors and transfer agents, and we are only at the beginning of this most promising journey.”
Other mainstream financial companies are also adopting blockchain for their services. Most recently, the German housing firm, Vonovia issued €20 million worth of bonds on Stellar blockchain.
As the adoption of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term in the mainstream financial settlement is increasing, Zürcher Kantonalbank (ZKB) and Deutsche Börse’s Clearstream have processed their first live blockchain-based end-to-end fund transactions.
According to Tuesday’s announcement, the companies used FundsDLT decentralized platform for the transaction.
Based on Ethereum, FundsDLT reengineered the fund distribution value chain, from front to back, covering the entire fund lifecycle. Clearstream became a stakeholder in the project last year along with Credit Suisse.
More and More Blockchain Adoption
Blockchain technology overall is seen as a gamechanger for the financial industry with many advantages over the existing centralized infrastructure. For instance, the transaction processing time from the existing few hours can be trimmed down to a few minutes or even seconds. The consensus-based technology can further add another security layer to the transactions.
For the transaction between ZKB and Clearstream, the distribution of the investment fund took place between Switzerland and Luxembourg. The order was captured and delivered to Clearstream’s fund processing platform Vestima via the blockchain.
Commenting on the use of new technology, ZKB’s Head of Digital Asset Solutions, Peter Hubli said: “The proof of value allowed us to have a sneak peek into the future of the fund industry, its potential and impact not only for ZKB, but also for our clients and partners. By leveraging blockchain technology, we get both an overview of the entire flow of assets and money and can also identify and understand investor's needs.”
“It is important that our customers can Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term the advantages of blockchain starting today, with access to a large investment funds portfolio via proven, regulation-compliant and safe fund processing environments,” Bernard Tancré, Head of Investment Fund Services Products at Clearstream, said.
“This initiative significantly increases operational efficiency for investors, distributors and transfer agents, and we are only at the beginning of this most promising journey.”
Other mainstream financial companies are also adopting blockchain for their services. Most recently, the German housing firm, Vonovia issued €20 million worth of bonds on Stellar blockchain.