Securities house Euroclear announced a go ahead with a pilot blockchain-based platform for to issue and settle corporate commercial paper (ECP) transactions.
The $1.2 trillion ECP (short for European commercial paper) market refers to short-term securities issued by large companies and banks to avoid cash crunches to meet short-term obligations, such as paying staff.
Brussels-based Euroclear is one of the world’s largest clearance houses. Together with the European Investment Bank, Spain’s Santander bank and the consultants EY, the corporation has completed a “proof of value” study into an end-to-end blockchain platform.
The technology to be used in the pilot will replace time-consuming bilateral processing between multiple market participants with one consolidated hub. Other key benefits is the real-time traceability of all ECP issuance activities as well as full transparency to all participants to the blockchain.