Onbrane, a provider of short-term debt market digitalisation technologies, has developed a primary debt market blockchain simulator, shadowing real transactions in a virtual blockchain environment.
The simulator is built on public blockchain Ethereum, and Onbrane has invited participants in the primary debt market to test the technology.
Onbrane CEO Pascal Lauffer told The DESK the simulator will cover the short-term primary debt market, namely commercial paper (CP) issuances.
On whether the technology would pose challenges to the secondary market, Lauffer said, “Our experimentation is not a proof of concept, but a simulator. We will tokenise real CP issuances on the Ethereum blockchain and will simulate the entire process from issuance to clearing and settlement. Since it is a simulation, this won’t impact the secondary market.”
Onbrane said it is looking to explore the potential of blockchain technology, facilitating debt issuances that are verifiable and tamper-proof and eliminating operational inefficiencies and delays.
Onbrane chief product officer, Arnaud Sales, said, “Focused on the current pain points, but ready for the technologies of tomorrow has been our approach to blockchain technology since the birth of Onbrane. We believe in its potential to solve shortcomings of debt market processes.”
“We chose, however, to introduce it to the market when this one is ready to embrace it,” he continued. “Blockchain experimentation is a logical continuation of this approach. With this launch, we cordially invite industry leaders, financial institutions, investors, and all stakeholders to embark on this transformative journey with us. Participating in this experimentation means becoming an integral part of reshaping the primary debt market and unlocking new horizons.”
France-headquartered Onbrane develops solutions for the debt market, covering vanilla, sustainable, and asset-backed debt products.
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