Spanish Stock Market BME Successfully Tests a Blockchain Solution for Digitized Collateral Pledges

Bolsas y Mercados Españoles (BME), a prominent operator in Spain’s stock market, is ready to launch a blockchain-based solution for electronic certificates of collateral pledges.

The project was developed in partnership with Renta 4 Banco, the only investment company listed under BME. Its objective is to transform the certification system from manual to digital. As a result, network users would have immediate access to data.

The solution is based on a proof-of-concept (PoC) consensus algorithm. In the pilot phase, developers used Renta 4 Banco as the testing point. The result was a massive improvement in the efficiency of operations. In fact, the average turnaround time for various processes decreased by 80%.

The consensus mechanism was developed at the DLT-Lab, a division of BME that deals with blockchain technology. The pilot phase, on the other hand, was conducted together with Renta 4 Banco, Iberclear and BME Clearing.

As of now, BME and Renta 4 Banco are looking for ways to improve the project before its official launch. The inauguration is expected to occur before the year ends.

Speaking on the pilot, BME's head of digital transformation, Berta Ares, said that blockchain technology improves the efficiency of operations. He also added that it guarantees the security of information saved on electronic certificates.

This is the second time that BME has entered a partnership to support a blockchain project. Earlier, the company collaborated with leading banks from Europe to develop a blockchain-driven solution to keep records of the issuance of financial records. Some of the banks included CaixaBank, BNP Paribas and BBVA.

The adoption of blockchain tech to improve the efficiency of company operations is increasing. For instance, the SIX Swiss Exchange will assess the impact of integrating blockchain technology on its impending digital exchange. It is expected that the technology will reduce the risk of trading and expand the asset portfolio listing.

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