Spanish Stock Exchange BME Debuts Collateral Pledge Digitization on the Blockchain



BME Blockchain

Bolsas y Mercados Espanoles, BME, is a major Spanish stock market operator. On a March 15th press release, the company announced that it has completed a vital blockchain project. BME has been doing some pilot work for collateral pledges. It has also been developing electronic certificates that will work with these pledges.

The firm aims to stop using physical certificates. Instead, it will make every process digital. Better still, it will give people real-time access to data. BME was working on this project with Renta 4 Banco.

Making Work Easier

The pilot project, according to the press release, aimed at creating a solution which makes work easier. If implemented, the pilot will enable the people taking part in the exchange to save processing time. It is very effective, cutting the processing time by a whopping 80 percent.

The pilot’s proof-of-concept (PoC), created by an arm of BME called DLT-Lab, developed the pilot. The Lab has various responsibilities like research and regulations. DLT-Lab worked with tools from BME. It also collaborated with Iberclear and Renta 4 Banco.

Per the press release, Renta 4 Banco and BME will work together until the end of 2019 to ensure that the system is launched without a hitch. According to Berta Ares, who is BME’s head of Digital Transformation, the DLT technology will help parties to get legal backing for electronic certificates. Operating times will also be reduced drastically. Finally, the blockchain maintains privacy and ensures that the company is compliant with government regulations.

Part of the press release read:

 The proof has shown a reduction in the total times of end-to-end processes exceeding 80%. Moreover, the system will bring about a radical improvement in the participants’ operational and risk management as they will gain direct access to the information and participate in the validation of pledge agreements.

Past Projects

In the past, the stock exchange took part in a similar project. It helped in creating a distributed-ledger solution to help in documenting financial warrants. The initiative brought together eight big companies in the financial sector. This included BNP Paribas, CaixaBank, BBVA, and the National Securities Market Commission.

The trend is spreading in the industry. Last month, Cointelegraph wrote a report about the Zug-based SIX Swiss Exchange’s plan to use the DLT tech for a proposed digital trading platform. Its benefits are similar – it saves time, minimizes trading risks and expands the portfolio of titles that can be traded.

Do you think that BME’s exchange will grow to rival the likes of Coinbase? Let us know in the comment section below!

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