Swiss Securities Co.: Bond D-Ledger to Bow

Announcements, Blockchain, FinTech, Investing | March 22, 2017 By:

Swiss post-trade provider SIX Securities Services announced that it has developed a distributed ledger technology (DLT)-based prototype for a bond-issuing solution that covers the entire bond lifecycle, from issuance to settlement.

The solution enables bonds to be issued as smart contracts that specify which dates coupon payments are made; the exact amounts; and how/when repayments occur. It includes the connection of the smart contract to the chain where buyers can allocate money to the bond by paying in digitalized currency to the address of the bond.

The prototype, which the company intends to deploy, was presented at this year’s SIX Securities Services Post Trade Forum at the Andaz Hotel in London on the 16th of March. No date has been set for the public launch. Last year, SIX Securities entered a partnership with Digital Asset Holdings to explore the application of blockchain technology in the Swiss financial markets. The prototype is the first fruit of that alliance.

“Though still some way off for market-wide adoption, we are firm in the belief that the potential shown here is promising – for us – and for the industry as a whole,” said a statement from SIX Securities Services CEO Thomas Zeeb. “I am convinced that what we have achieved with this approach could revolutionize several processes used by the Swiss financial services industry while sustainably securing our role in the provision of services throughout the Swiss value chain.” .