Commerzbank, Continental and Siemens test blockchain tech on money market
Commerzbank has teamed up with Continental and Siemens to carry out a EUR100,000 test commercial paper transaction using blockchain technology.
Commerzbank provided a blockchain platform based on R3's Corda for the transaction, with Continental acting as the issuer of the money market security, which was in the form of a euro-denominated electronic commercial paper, and Siemens subscribing as an investor.
A regular securities transaction between two companies was used as a starting point, with the partners not only generating the money market security, but also processing the trade - including payment processing - in a legally binding manner using blockchain. By using the blockchain technology, the documents and funds were exchanged in a matter of minutes rather than days.
