Dekabank confirmed that the transaction represented the Electronic Securities Act-compliant technical “pull-to-pull” (simultaneous) transaction in the German crypto securities sector. The July 11 statement explained that the transaction’s efficient support by the DeFi market infrastructure developer SWIAT made it technically possible.
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The Dekabank statement clarified that the institutions did not require transaction managers or custodian banks acting as trustees to “oversee the secure exchange.” According to Dekabank, the Secure Worldwide Interbank Asset Transfer (SWIAT) provided a blockchain-based transaction platform as a settlement network that enabled the exchange of regulated digital assets.
Clearstream, DekaBank and DZ Bank have jointly issued two tokenised €5-million bonds using (DLT). The issuances took place in the context of the ECB trials aimed at exploring the potential of DLT for settling wholesale transactions in central bank money.
— mike manfield (@fairfieldcases) July 1, 2024
Dekabank believes pull-to-pull will accelerate interbank transactions
Dekabank’s statement mentioned that the transaction was one of the first “pull-to-pull” transactions in which money and securities were swapped concurrently via SWIAT’s platform. Metzler confirmed it would support both phases of the two-phased ECB project that introduced the “wholesale euro” as a digital form of central bank money for large interbank transactions.
Metzler Bank affirmed that it founded the Digital Asset Office in 2022 to handle matters relating to the digital ecosystem. Metzler added that it was now equipped to offer future-oriented and tailor-made solutions for its customers in the digital space.
“We are convinced of the potential of distributed ledger technology for our customers and see it as our task to help shape this development.”
– Mario Mattera, Member of the Board of Management at Bankhaus Metzler
According to Metzler, the ECB’s project brought together pieces of the digital ecosystem puzzle, such as central bank money, technical infrastructure, and tokenization. Dekabank disclosed that bringing the puzzle pieces together would help conduct blockchain-based transactions much faster and more transparently than the “classic settlement infrastructure.”
The Head of Treasury at Dekabank, Silvio Lenk, said that payment transactions using digital bank money were essential because they enabled the development of the digital assets market.
Fintech SWIAT helps to streamline wholesale euro trades
Dekabank’s statement revealed that in addition to the blockchain software, SWIAT further provided interoperability that connected its asset chain with the Bundesbank’s trigger chain.
The Dekabank statement affirmed that the blockchain-based SWIAT enabled real-time transactions where the “usual hedging” was unnecessary. Dekabank disclosed that real-time transactions reduced counterparty risks and the trading partners’ coordination efforts.
“For such securities transactions, trade and settlement now fall on almost the same point in time.”
– Andreas Tanneberger, Head of Fixed Income Trading at Metzler Capital Markets
Tanneberger asserted that pull-to-pull trading presented more advantages than the status quo and pointed out future technical possibilities. The Head of Money/Forex & Repo/Lending at Dekabank, Michael Cyrus, agreed that pull-to-pull trading would make the lending market more attractive for existing and new market players.
According to Dekabank, SWIAT would make the processing of security transactions and payments more efficient and cost-effective.