Eurex Derivatives Forum Takes a Look At German Blockchain Innovation

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Thom Thompson

Thom Thompson

Editor

Day One of the Eurex Derivatives Forum, held this week on Tuesday and Wednesday, offered a discussion of German developments in blockchain innovation. Germany has implemented not only detailed legislation on custody of cryptocurrencies and digital assets but has also recently adopted a law allowing electronic issuance of securities, including on blockchain.

The “Digital Securities and Tokenization” panelists seemed to agree that digital securities will find their first adoption either in new types of securities, such as carbon emission offset certificates, or bonds. Bonds, they said, are more immediately amenable to blockchain because the whole life cycle can easily be entered on the blockchain — origination, coupons and redemption.

In contrast, equities tend to embody unforeseeable events, ongoing issuances and no expiration dates. Thomas Triebel, senior manager of business development international at the German fund MEAG, and Benjamin Duve, head of digital assets and custody at Commerzbank, called for the new technologies to be interoperable to ensure competition and drive down costs. 

Jens Hachmeister, managing director, issuer services and new digital markets at Deutsche Boerse, emphasized efficiency gains from blockchain-based securities market infrastructure. 

Hachmeister stressed the need for standardization and a central trusted provider for the decentralized financial system. His remarks led panel moderator Rudolf Siebel, managing director at the German asset management association BVI, to poke jokingly at Hachmeister as the monopolist among the group.  

 

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