BNP Paribas Securities Services, a subsidiary specializing in multi-asset services, signs a partnership with Digital Asset. The goal: to design blockchain applications for real-time exchange and settlement using DAML smart contracts.
The big banks are still often conservative about cryptocurrencies. However, their adoption of blockchain technologies, including smart contracts, in the financial sector is a reality.
For market activities in Asia-Pacific, BNP Paribas Securities Services thus formalizes a partnership with Digital Asset. The publisher specializes in DLT applications and DAML smart contracts.
An election service for corporate actions in 2021
And Digital Asset will therefore bring its expertise to the subsidiary of BNP Paribas, a securities services provider. BNP Paribas Securities Services thus wishes to develop real-time securities exchange and settlement applications for 2 stock exchanges in Asia-Pacific.
The bank will provide real-time access to future DLT platforms of the Australian Securities Exchange (ASX) and the Hong Kong Exchange (HKEX). The names of these systems: CHESS + and Synapse.
BNP Paribas further emphasizes that the applications will also be available to customers in markets without DLT (Distributed Ledger Technology). The key 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 actions. Through DAML smart contracts, all parties involved "will simultaneously receive information on corporate actions, such as decisions to reinvest dividends or take a bid. "
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 recent information. For Luc Renard, director of digital transformation of BNP Paribas Securities Services for the APAC region, it is of course a question of adapting to the technological developments of the stock exchanges.
"We are excited to lay the groundwork for our direct connectivity to the next-generation ASX solution and 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 a smart, platform-agnostic contract language, it can be used by almost any trading and settlement platform that an exchange could choose, ”continues Luc Renard.