Rabobank has reportedly carried out several pilots in order to execute over €2 billion in commercial paper transactions via blockchain platform Ubermorgen.
The platform provides financial market participants with instant access to funds via the automated issuance of commercial paper as well as certificates of deposit.
For the trial, Rabobank Markets and Ubermorgen work closely with Rabobank Treasury, TreasurySpring and major asset managers, carrying out several different commercial paper and time deposits in EUR, USD and GBP with an aggregate notional of more than two billion.
Henry Adams, chief product officer at Treasury Spring, said:
“The move to T0 and instantaneous settlement represents a significant milestone in the development of capital markets along with reducing credit risk in the financial system. There is immediate value in particular to several regulated sectors within our client base where day count is critical that we look forward to capturing on their behalf.”
The pilot had also integrated various analytics tools, offering market participants with real-time insights into key money market developments/trends.
Jacek Wieclawski, head of innovation at Rabobank, added:
“The hybrid approach, global and instant interoperability is the future of finance. Our clients have shared their enthusiasm about this new solution, which blends the best of both worlds – the speed and flexibility of a distributed ledger technology and the reliability and compliance of a centralized system.”
Coöperatieve Rabobank U.A. is “a full-range financial services provider that operates on cooperative principles.”
Its origins lie in the local loan cooperatives that “were founded in the Netherlands nearly 110 years ago by enterprising people who had virtually no access to the capital market.”
Rabobank Group is comprised of independent local Rabobanks plus Rabobank Nederland, their umbrella organization, as well as “a number of specialist subsidiaries.”
Overall, Rabobank Group reportedly “has approximately 61,100 employees (in FTEs), who serve about 10 million customers in 47 countries.”