Clearstream is part of Deutsche Börse Group and provides the post-trade infrastructure for the Eurobond market and services for securities from 58 domestic markets worldwide Matic Zorman/archives

Clearstream is part of Deutsche Börse Group and provides the post-trade infrastructure for the Eurobond market and services for securities from 58 domestic markets worldwide Matic Zorman/archives

The transaction, which was processed by FundsDLT, reduced overall processing time for an investor order from several hours to a few minutes.

The joint solution was leveraged by Swiss bank Zürcher Kantonalbank (ZKB), with an end investor placing a fund transaction request via a smartphone app on the private blockchain.

According to Clearstream, the “order was captured and delivered to Clearstream’s fund processing platform Vestima via the blockchain. ZKB’s client received real-time updates and, after a few minutes, the transaction confirmation on the app – a process that could commonly take several hours before.” 

Glimpse of funds industry future

ZKB exploited its existing connection to Vestima and triggered the blockchain-based fund transactions via API delivered by FundsDLT, allowing ZKB to access all 48 connected fund markets without the need for additional onboarding processes.

“The proof of value allowed us to have a sneak peek into the future of the fund industry, its potential and impact not only for ZKB, but also for our clients and partners. By leveraging blockchain technology, we get both an overview of the entire flow of assets and money and can also identify and understand investors' needs,” said Peter Hubli, head of digital asset solutions at ZKB.