The fact that financial services and even state enterprises are currently looking into the potential game-changing potential that blockchain technology yields is not surprising. The Deutsche Bourse is the latest institution to look into the benefits of blockchain tech by setting up a dedicated unit (for blockchain and crypto assets), as recently reported by Finextra.
The freshly created “DLT, Crypto Assets and New Market Structures” unit will be comprised out of 24 highly qualified persons, and it will be led by Jens Hachmeister. As previously mentioned, the unit’s main goal is to explore the immense and disruptive potential that blockchain technology could have for financial market infrastructure.
“Deutsche Börse has been active with the technology in a first phase of ideation and exploration […] However, these explorative steps have not been coordinated on a group-wide level. In order to use the full potential of the technology for our businesses, to generate efficiencies and create revenues, a centrally steered approach is necessary,” the team leader highlighted.
Jens Hachmeister also hinted at the fact that the said technology could also prove to be quite important for various traditional segments across Deutsche Bourse’s value chain. These include functions such as pre-IPO listing, trading, and clearing, settlement and custody.
Blockchain technology holds an important role in the future of DB
“From Deutsche Börse’s point of view, the DLT/blockchain technology is a key opportunity for the creation of new market structures, adding new products onto our present structures and enhancing our existing offerings,” Hachmeister says.
The leader further declared that “Of course, the expectations are high and not all of them will be fulfilled – blockchain will not be the answer to all our questions. The digital economy, in general, is heading for decentralization. In the future, there will be more peer-to-peer governed marketplaces and fewer intermediaries. In that regard, blockchain has the potential to disrupt the capital markets infrastructure.”
This is not the first time the Deutsche Bourse has expressed its keen interest in blockchain technology, as just at the start of the year, the institution made a million euro investment by supporting the blockchain-based liquidity provide HQLAx.