BME Rolls Out Blockchain-Powered Collateral Pledge Certificates
BME, a Spain-based stock market operator, has established a service dubbed BE DLT-Preda that deploys blockchain technology in the digitization of collateral pledge certificates—eradicating the need for physical documents.
BE DLT-Preda was developed by the DLT-Lab of BME, a laboratory that analyzes and explores blockchain technology in collaboration with financial institutions and all BME fields.
This service has attracted some participants, such as Renta 4 Banco, a financial institution specializing in investment products and services, because it has already registered the first digital collateral pledges via blockchain.
Blockchain Offers Procedural Digitization
The new approach has been tested for nine months, and it entails procedural digitization and offers real-time information access to all participants.
By leveraging blockchain technology, the time required for the constitution of a pledge is significantly reduced from 24 hours to, at most, 10 minutes.
Participants are also rendered with benefits, such as efficiency and minimized risks. This is because they can directly access the information required in the validation of transactions linked to the constitution of the pledges.
BME’s general manager, Berta Ares, acknowledged: “The new development is the result of BME's commitment to innovation and digitalization as the main ways of providing value in the financial industry.”
The blockchain-powered collateral pledges are expected to enhance productivity by reducing the time spent and unnecessary paperwork.
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