Rabobank issues blockchain assisted Realtime Commercial Paper

corda dlt enterprise_blockchain Uncategorized

Rabobank executes a real-time Euro
Commercial Paper transaction with a
blockchain element after pilot with NN
Investment Partners, Commerzbank and
Euroclear

Rabobank has successfully issued, distributed and settled €1 million, 1
week maturity and XS-ISIN Euro Commercial Paper out of Rabobank €35
billion CP and CD Programme by using a mix of blockchain technology
and existing infrastructure, that settled instantly, as opposed to standard
T+2 business days.
‘The pilot was the continuation of a successful Digital Euro Commercial
Paper pilot transaction executed in December 2018 and powered by the
Corda blockchain platform. As the innovation is playing an ever-growing
role in financial and capital markets, Rabobank Markets is actively
working with its institutional clients to identify and implement new
technology solutions to cement our leading Commercial Paper position
and stay competitive globally.’
Robert Ruisch – Head of Commercial Paper Trading, Rabobank Markets

The trade economics and settlement instructions were confirmed and
matched in real-time on Corda permissioned ledger, and the security
settled against cash instantly on the Euroclear bank’s infrastructure. The
technology facilitated a new way of intraday liquidity for publically traded
debt securities on both primary and secondary markets.

The pilot gathered multiple partners participating in the pilot proving that
blockchain can be regarded as a single source of trust when trading and
settling debt securities instantly.

‘Rabobank Treasury was extremely pleased to partner with Rabobank
Innovation & Markets colleagues to deliver this successful Blockchain
Pilot transaction.  Innovation is a key strategic theme within Rabobank
Treasury, and we are excited to evolve with the market to offer quicker
and efficient Commercial Paper settlement to our key Investor base.’
Frank Beset, Chirag Patel – Liquidity Management, Rabobank Treasury

‘When co-discussing innovation with our institutional clients, we learned
that blockchain technology can boost intraday liquidity for debt securities,
meaning our clients can manage their portfolio and liquidity risks in a
truly real-time manner. By leveraging the mix of both blockchain and
existing technologies, we managed to create a new market for our clients
where public debt securities can be traded and settled instantly while
keeping fund managers focused on managing investors’ money in real-
time.’
Jacek Wieclawski – Innovation, Rabobank Markets

‘Commerzbank’s previous Blockchain Commercial Paper and Bonds
transactions demonstrated feasibility of digital assets creation and
interoperability between traditional financial ecosystems and new types of
assets. The recent transaction outlines the possibility to use new
technology in combination with existing financial applications setup,
allowing participants to achieve benefits in securities distribution without
re-creating a bank from scratch.’
Mark Andryeyev – Head of Bond Syndicate and Trading, Commerzbank

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