BNP Paribas Securities Services, a subsidiary specialized in multi-asset services, signs a partnership with Digital Asset with the objective of designing real-time blockchain exchange and settlement applications using DAML smart contracts.
The major banks are still often conservative when it comes to cryptocurrency. However, their adoption of blockchain technologies, including smart contracts, in the financial sector is a reality.
An election service for corporate shares in 2021
And Digital Asset will therefore bring its expertise to the subsidiary of BNP Paribas, a securities services provider. BNP Paribas Securities Services wishes to develop real-time securities exchange and settlement applications for two Asia-Pacific stock exchanges.
The bank will provide real-time access to the future DLT platforms of the Australian Securities Exchange (ASX) and the Hong Kong Exchange (HKEX). The names of these systems are CHESS+ and Synapse.
BNP Paribas further emphasizes that the applications will also be available to customers in markets without DLT (Distributed Ledger Technology). The result is the possibility of benefiting from real-time workflows.
The first solution will be released in 2021. It will be an election service for corporate shares. Thanks to DAML smart contracts, all parties involved “will receive information on corporate actions at the same time, such as decisions on dividend reinvestment or takeover bids. »
DAML future standard for international financial markets
This automation should help reduce processing time, improve operational efficiency, and enable investors to make decisions based on the most up-to-date information. For Luc Renard, Director of Digital Transformation at BNP Paribas Securities Services for the APAC region, it is of course a question of adapting to the technological changes in stock exchanges.
“We are delighted to lay the foundations for our direct connectivity to the ASX next generation solution and for the future phase of the HKEX platform with our first DAML-based solutions,” he said.
“We believe that DAML has the potential to emerge as a new standard for international financial markets. As an intelligent and platform agnostic contract language, it can be used by almost any trading and settlement platform that an exchange might choose,” continues Renard.