Rabobank has completed a series of pilots to execute more than €2 billion in commercial paper transactions on blockchain platform Ubermorgen.
The platform gives financial market participants instant access to funds through the automated issuance of commercial paper and certificates of deposit.
For the trial-run, Rabobank Markets and Ubermorgen collaborated with Rabobank Treasury, TreasurySpring and two large asset managers, executing multiple commercial paper and time deposits in EUR, USD and GBP with a total notional of over two billion.
Henry Adams, chief product officer at TreasurySpring, comments: “The move to T0 and instantaneous settlement represents a significant milestone in the development of capital markets along with reducing credit risk in the financial system. There is immediate value in particular to several regulated sectors within our client base where day count is critical that we look forward to capturing on their behalf.”
The pilot also integrated analytics tools, providing market participants with real-time insights into money market trends.
Jacek Wieclawski, head of innovation at Rabobank, says: “The hybrid approach, global and instant interoperability is the future of finance. Our clients have shared their enthusiasm about this new solution, which blends the best of both worlds - the speed and flexibility of a distributed ledger technology and the reliability and compliance of a centralized system.”