Deutsche Börse Launches Dedicated Blockchain Team

The financial services industry’s interest in blockchain technology continues to grow. This Monday, Deutsche Börse announced that it has set up a dedicated 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 tamp 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 tamp Read this Term and crypto-asset division.

The new division will be headed up by Jens Hachmeister who has been leading the market organiser’s blockchain initiatives since April of this year. According to a statement issued by Deutsche Börse, Hachmeister will be leading a team of 24 people.

The company has been actively exploring the capabilities of blockchain for some time now. Aside from cryptocurrency, the firm has also been looking at how blockchain could be used for smart contracts, securities settlements and, more vaguely, “co-operation with international securities depositories.”

Despite this, blockchain developments at Deutsche Börse have, until now, been scattered. In a statement this Tuesday, Hachmeister said that “explorative steps have not been coordinated on a Group-wide level. In order to use the full potential of the technology for our businesses...a centrally steered approach is necessary to make a greater impact."

Deutsche Börse - blockchain adopter

That “impact” could be felt across the whole range of Deutsche Börse’s business lines. The company claims that blockchain technology may eventually be used in its trading, clearing, pre-IPO, settlement and data analytics services.

"Of course, the expectations are high and not all of them will be fulfilled,” said Hachmeister. He noted: “From Deutsche Börse’s point of view, blockchain technology is a key opportunity for the creation of new market structures, adding new products onto our present structures and enhancing our existing offerings.”

One avenue that Deutsche Börse looks certain to pursue is securities lending. As reported by Finance Magnates, the market organiser became a majority shareholder in HQLAx just last week.

Founded in 2016, the start-up firm hopes to use blockchain technology to create a securities lending marketplace. The firm claims that its technology will improve operational efficiency and bolster Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term for securities lending.