Zurich
17 March 2017
Reporter: Katherine Brown

SIX unveils DLT bond issuance solution


SIX Securities Services has created a distributed ledger technology (DLT) solution to cover the entire bond lifecycle, from issuance to settlement, in partnership with Digital Asset Holdings.

The solution allows for the issuing of bonds as smart contracts, which specify the dates that coupon payments are made, how and when repayments are made, and the payment amounts.

Smart contracts will be connected to a chain, allowing buyers to allocate funds to a bond by paying in digitised currency to the address of the bond.

SIX Securities Services partnered with Digital Asset Holdings in September 2016 in a bid to deliver DLT solutions to the Swiss financial market, and the prototype model was presented on 16 March.

Thomas Zeeb, CEO of SIX Securities Services, said: "Though still some way off for market-wide adoption, we are firmly of the belief that the potential shown here is promising, for us and for the industry as a whole. It also demonstrates our philosophy of focus and determination to research technological advancement with minimal disruption to our existing business models."

He added: "I am convinced that what we have achieved with this approach could revolutionise several processes used by the Swiss financial services industry while sustainably securing our role in the provision of services throughout the Swiss value chain."

The distributed ledger platform is intended to provide benefits through providing one source of data, a secure digital record of transaction data flows between market participants, reduced costs through removal of operational and reconciliation processes, and reduction of settlement and counterparty risk.

More technology news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Klesia Finances goes live with NeoXam’s Density solution
23 February 2018 | Paris | Reporter: Jenna Lomax
According to Klesia, Density will assist it in facing the current French and European regulatory landscape
Benelux trio set to strengthen collaboration on blockchain
22 February 2018 | Brussels | Reporter: Becky Butcher
B-Hive, the Luxembourg House of Financial Technology and the Dutch Blockchain Coalition have signed a memorandum of understanding to strengthen further collaboration in blockchain within the Benelux region
FS-ISAC enables safer financial data sharing with API
20 February 2018 | Virginia | Reporter: Jenna Lomax
The introduction of the new API supports enhancements to secure financial data transfer including improvements in speed and error reduction
Nasdaq and OPCOM sign new market technology agreement
15 February 2018 | Bucharest | Reporter: Jenna Lomax
The agreement means Nasdaq will deliver new matching engine and clearing technology to OPCOM, Romania's market operator for gas and electricity
GFT Technologies creates new DLT platform
13 February 2018 | London | Reporter: Jenna Lomax
GFT Technologies, together with its partners in Italy, is to set up a secure cross-platform blockchain distributed ledger technology network across Europe
Citi opens new technology hub in London
13 February 2018 | London | Reporter: Jenna Lomax
Citi is expanding its network of Global Innovation Labs, with the opening of a new hub in London
Companies using blockchain gain important advantage
08 February 2018 | London | Reporter: Becky Butcher
Companies, which are able to leverage blockchain technology, will gain an important advantage over their competitors and according to GlobalData’s payments analyst Samuel Murrant, the market is sure to follow
More technology news