Continental, Commerzbank and Siemens announce their first successful “Blockchain” transaction. Thanks to the Corda technology of the banking syndicate R3, the test transaction could be completed within a few minutes.
The number of companies discovering Distributed Ledger (DLT) technology for transaction processing continues to grow. The tire manufacturer Continental announces its first securities business, which ran completely through the DLT. In a test transaction, Siemens acquired as investor a money market security with a volume of € 100,000 from Continental. The process, which usually takes several days, was completed by Commerzbank in just a few minutes. The companies announced this on February 21 in a joint press release.
” While markets and technologies are constantly changing, the partnership relationship with the customer remains an important asset. We are happy to be able to accompany our customers through transactions like these on the path of digital transformation.
the Board of Directors of Capital Markets of Commerzbank states.
For Stefan Scholz, Head of Finance & Treasury at Continental, the pilot project proved the potential of DLT:
” Even faster and more effective thanks to Blockchain. With our project partners Siemens and Commerzbank, we tested a possibility of using Blockchain in the finance area and proved that exactly. I am proud of this pioneering achievement. We have gained new experience in various areas of our company – both in technical and legal terms, and in the interlinking of specialist departments with each other.
The technical basis is the Corda platform of the banking syndicate R3, which provided Commerzbank’s own research and development unit Main Incubator.
The old song: Corda is not a blockchain
Landesbank Baden-Württemberg also used Corda technology for their first steps in the DLT field. On 19 February, LBBW also announced the successful issue of a money market paper based on DLT.
What also links the reports of LBBW and Commerzbank is the corruption of the word “Blockchain”. Unlike Bitcoin, for example, Corda does not have a public-access transaction book.
The sacrifice of transparency on the altar of privacy makes sense from a bank’s perspective. However, without the aspect of public accountability, Corda remains an enterprise DLT that is not a blockchain.