Stuttgart stock exchange successfully selected for ECB test in blockchain-based processing

Stuttgart stock exchange successfully selected for ECB test in blockchain-based processing

The only stock exchange operator in Europe has successfully applied to the Stuttgart Börse for the second wave of the EU-wide tests of the European Central Bank (ECB). In these tests, the handling of blockchain-based financial transactions against central bank money is tested. Together with the partners Commerzbank, Deutsche Bank, DZ Bank, LBBW, Bankhaus Metzler and V-Bank, the Stuttgart group will test the handling of market transactions with tokenized securities against euros. The banks are connected to the blockchain-based settlement solution of the Stuttgart Stock Exchange Solution as a commercial and handling participant. The Deutsche Bundesbank provides its trigger solution for the test, which combines blockchain transactions with the traditional euro payment system.

The group Stuttgart group enables secondary market transactions of tokenized securities on the blockchain directly between the trading participants. This is done within minutes, without central catering and against payments in central bank money. This consistent Delivery-Versus Payment process is particularly efficient, enables peer-to-peer processing and reduces the number of intermediaries and counterparty risks.

dr. Matthias Voelkel, CEO of the Stuttgart Börse group, emphasizes the importance of digital assets and is convinced of the advantages of blockchain and tokenization for the European securities markets. He intends to help shape the future digital European market infrastructure for tokenized securities. In the second half of 2024, the Stuttgart Börse Stuttgart Group plans the start of the BX Digital, an exchange for trading and processing tokenized securities, which will be fully regulated and will use the self-developed, blockchain-based settlement solution.

The Stuttgart Börse will implement its application with the banks involved in a test environment by November. Practical findings on scalability, efficiency and speed of the processing process are to be obtained, including central bank money.

involved in the ECB tests are also the Broker Euwax AG and the crypto farmer Boerse Stuttgart Digital Custody, which belong to the Stuttgart Stock Exchange.

In the following, some information is summarized in a table:

| Börsen operator | Stuttgart stock exchange |
| Partner | Commerzbank, Deutsche Bank, DZ Bank, LBBW, Bankhaus Metzler, V-Bank |
| Settlement solution | Blockchain-based |
| Currency | Euro |
| Advantages | Efficient processing, peer-to-peer processing, reduction in intermediary and counterparty risks |
| Future project | BX digital, stock exchange for trading and handling tokenized securities, planned start in the second half of 2024 |
| Involved companies | EuWax AG (broker), Boerse Stuttgart Digital Custody (crypto custody) |

The group Stuttgart group would like to take an important step towards the design of the digital European market infrastructure for tokenized securities with its participation in the ECB tests.

Source: Stuttgart/OTS