European Investment Bank (EIB), Euroclear, Banco Santander, and Ernst & Young (EY) are to launch an end-to-end blockchain solution for the issuance and settlement of European Commercial Paper (ECP).
The proposed blockchain solution will reduce time-consuming bilateral processing between multiple market participants, providing one efficient consolidated hub for the issuing of ECP with delivery versus payment settlement by Euroclear.
The solution also offers full transparency and traceability of ECP issuance related activities–a reduction in operational costs and true time optimisation.
Euroclear intends to move on to pilot phase in the near future. Other ECP issuance institutions have expressed interest and will be invited to participate in the pilot phase.
Edwin De Pauw, head of data services and innovation at Euroclear Group, said: “We are delighted to have completed this proof of value with our partners and excited by the innovation opportunities it creates.”
He added: “Our ambition is to deploy an efficient blockchain powered solution that supports further growth of intra-day issuance for ECP markets.”
Angel Pavlov, senior manager at Ernest and Young and designer of this solution, commented: “Following Ernest and Young winning the EIB Blockchain Challenge, we are pleased to validate our solution on a larger scale. Further development of this innovative blockchain case is in line with our commitment to consistently bring more value to the business through innovation.”
