BME Launches Blockchain-Based Collateral Pledge Service

  • Be DLT-Prenda digitises the process using DLT technology to eliminate physical certificates and manual intervention
  • The time for the constitution of a pledge is reduced from 24 hours to less than 10 minutes

BME has successfully launched the process for the digitisation of the certification of collateral pledge using Blockchain technology, eliminating the need to use and exchange physical certificates.

Renta 4 Banco has actively participated in the project and has already registered the first digital pledges, thus becoming the first users of the service, called Be DLT-Prenda.

This new development, which has been carried out in just 9 months, involves the digitalisation of processes and guarantees access to real-time information for all participants, in this way reducing the time needed for the constitution of a pledge from 24 hours to less than 10 minutes. In addition, it improves operational and risk control of the participants, who are given direct access to information to be able to validate the transactions associated with the constitution of the pledges.

Berta Ares, General Manager of BME Inntech, points out that this new development “is the result of BME’s commitment to innovation and digitalisation as the main ways of providing value in the financial industry”.

The service has been developed entirely by the DLT-Lab of BME, a laboratory in which the use of Blockchain technology is analysed and explored in collaboration with all BME areas and financial institutions. Work is underway to evolve the Be DLT-Prenda service towards the digitalisation of bank guarantees.

Source: BME


Related articles

  1. The not-for-profit initiative will make it easier to ensure funds are comparable and clear about costs.

  2. The new venue hopes to attract 15 to 20 listings over the next year.

  3. An increasing number of firms are using distributed ledger technology.

  4. Societe Generale paid for covered bonds in digital euros issued by Banque de France via blockchain.

  5. The equity derivatives clearing organization has selected Axoni to develop and implement DLT.