Friday, 22 October 2021

Deutsche Borse names Digital Asset as strategic technology partner for new digital post trade platform

New York – October 6, 2021 - Digital Asset, a software and services provider that helps enterprises build economic value through interconnected networks, today announced that it has been selected by Deutsche Börse, a financial market infrastructure provider, as a long-term strategic technology partner for its new fully digital post trade platform, D7. The new cloudbacked and DLT-ready platform paves the way for same-day-issuance and paperless, automated straight-through processing for the entire value chain of issuance, custody, settlement, and asset servicing for digital securities.

“The global securities market is ripe for innovation,” said Yuval Rooz, Co-Founder and Chief Executive Officer at Digital Asset. “Our shared vision with Deutsche Börse in realizing a digital future for capital markets will not only enable interoperability between financial institutions, but bring greater levels of efficiency, security and transparency to the German and broader global financial markets.”

The D7 platform is being developed jointly with a dedicated market community and in collaboration with long-term strategic technology partners, such as Digital Asset. In the first phase of the project roll-out, Deutsche Börse is working with Digital Asset to build a central registry system. For the first time in Germany, the new registry, built on a centralized database and other tools, forms the basis for issuance and custody of dematerialized securities in compliance with new legislation introduced earlier this year.

In subsequent rollouts, D7 will also support same-day-issuance and paperless, automated straight-through processing for certificates and warrants issued at Clearstream Banking AG. To this end, Deutsche Börse will leverage Daml smart contracts from Digital Asset to create and process Digital Instruments, the digital description of (electronic) securities, to manage the securities alongside the entire value chain.

“Dematerialization of securities and digitization of issuance processes is at the forefront of change in capital markets,” said Jens Hachmeister, Managing Director, Issuer Services & New Digital Markets, Deutsche Börse. “Digital Asset is at the center of this transformation, working with market infrastructures around the world to realize a digital future. It’s with technology partners, like Digital Asset and others, that we can foresee having over 80 percent of German securities digitized via D7 by mid-2022, fostering digitization of the German and European financial markets.”

Deutsche Börse’s new central registry is expected to be available in November 2021 followed by the full integration of smart Digital Instruments in mid-2022. Additional functions and features supporting distributed networks and distributed ledger technology with Daml smart contracts, among other tools, will be forthcoming in 2022 and beyond.

Deutsche Börse joins several leading organizations across capital markets that rely on Digital Asset to transform disparate data silos into synchronized networks. Digital Asset’s exchange client base includes the Australian Securities Exchange, Hong Kong Exchanges and Clearing, Nasdaq, and most recently Bursa Malaysia tapped Digital Asset to lead its dematerialization program for structured warrants. 

Re-disseminated from The Asian Banker. 

Diary of Activities
Transaction Finance and Risk Dialogue and Awards Ceremony
23 November 2021