SIX Securities Services has developed a distributed ledger-based bond issuing solution for the Swiss financial market, building on its partnership with Digital Asset Holdings, announced last year.
The prototype, which the company intends to deploy, was presented at its Post Trade Forum in London yesterday and covers the entire bond life-cycle. It allows the issuing of bonds as smart contracts that specify at what dates coupon payments are made, for what amounts and how/when repayments occur. This means that the customer benefits from a single source of data stored on a ledger, an immutable digital record of transaction data flows, cost reduction and security, SIX claims.
Thomas Zeeb, CEO SIX Securities Services, says: “This is an interesting solution approach. Though still some way off for market-wide adoption, we are firmly of the belief that the potential shown here is promising – for us – and for the industry as a whole. It also demonstrates our philosophy of focus and determination to research technological advancement with minimal disruption to our existing business models. I am convinced that what we have achieved with this approach could revolutionise several processes used by the Swiss financial services Industry while sustainably securing our role in the provision of services throughout the Swiss value chain.”