German banking and monetary services company Commerzbank and technology firms Continental and Siemens have conjointly conducted a money market security transaction pilot using blockchain technology. Top Market Group Deutsch reported on the development on February. 21.

Money market securities are short-terms assets that serve for financing firms and frequently have a maturity of 1 year or less. Usually, the process of a payment takes 2 days because of a clearing method.

The same parties “for the primary time” conducted a blockchain-based money market security transaction priced 100,000 euro ($113,340) within a pilot program in January, wherever Continental acted because the establishment of the protection, Commerzbank provided R3’s Corda-based blockchain platform, whereas Siemens signed to the money market security as associate degree capitalist.

The blockchain-powered platform reportedly allowed the businesses to improved flexibility, potency and transparency within the deal. Speaking regarding alternative advantages of the transaction, Peter Rathgeb, corporate treasurer at Siemens, said in a February. 21 press release:

“The considerably shorter output times and quicker time-to-market show clear benefits of this technology [blockchain]. Key challenges embrace security and performance problems, moreover as legal problems like the requirement to make an identical European standard and understanding of the law on blockchain-based transactions.”

In late 2018, Commerzbank unitedly with French company and investment bank Natixis, and Dutch monetary services firm Rabobank completed a live 100,000 monetary unit ($113,340) cash equivalent transaction on the Corda platform. Commerzbank developed the pilot framework, software system and distributed ledger (DLT) network for the trade, and directions on restrictive implications.

Previously, Siemens joined a scalable blockchain platform, the Energy web Foundation (EWF), to push the employment of suburbanized technologies within the energy sector. Siemens officers reportedly argued that blockchain technology can facilitate increase ability within the space, linking customers with energy producers and network operators.

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