Rabobank has completed a series of groundbreaking pilots to execute more than EUR2 billion in commercial paper transactions on a first-of-its kind blockchain platform.
The platform, Ubermorgen, is designed to give financial market participants instant access to funds through the automated issuance of commercial paper and certificates of deposit, highlighting the potential of blockchain technology for real-time settlement and enhanced real-time money market analytics.
The pre-production pilot programme, which is an industry-driven joint initiative, also underscores the adaptability and interoperability of blockchain in traditional financial instruments, connected to multiple legacy infrastructures. In addition, Ubermorgen showcases the power of real-time settlement, providing an unprecedented level of efficiency and transparency in the issuance and trading processes. This advancement promises to revolutionise the current settlement landscape and intra-day liquidity management.
In the recent trial-run, Rabobank Markets and Ubermorgen collaborated with Rabobank Treasury, TreasurySpring and two large asset managers, executing multiple commercial paper and time deposits in EUR, USD and GBP with a total notional of over EUR2 billion. Their active participation and endorsement signify the industry-wide recognition of the potential benefits of blockchain in the money markets, the firm writes.
The pilot also integrated cutting-edge analytics tools, providing market participants with real-time insights into money market trends. This data-driven approach enhances decision-making capabilities for treasurers, dealers and asset managers, offering a competitive edge in navigating the dynamic financial landscape.
Youssef el Mir, Global Head of Trading at Rabobank, says: “We are proud to have achieved this milestone in collaboration with esteemed global asset managers. This successful pilot demonstrates the transformative potential of blockchain in enhancing efficiency, transparency, and analytics in the financial sector.”
Steve Patrick, Chief Operating Officer at Ubermorgen, adds: “Ensuring smooth interoperability between Distributed Ledger Technology (DLT) and established financial infrastructures is vital for a seamless shift toward the widespread adoption of DLT platforms in the market. We are delighted to collaborate closely with industry leaders in the financial markets to contribute to establishing the Ubermorgen real-time markets and A.I driven analytics platform as an industry-standard solution.”
Henry Adams, Chief Product Officer at TreasurySpring, says: “We are delighted to have worked with the high-calibre teams at Ubermorgen and Rabobank participating in this, the second round of pilots. 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. TreasurySpring looks forward to now going live and contributing to the broader adoption of these technologies. 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.”
Jacek Wieclawski, Head of Innovation at Rabobank, says: “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 centralised system.”
