The Spanish National Securities Market Commission (CNMV), the country’s financial market regulator, in a partnership with a number of banking institutions, has finished a new test of Fast Track Listing (FTL) powered by blockchain technology. The project has already shown successful results in reducing processing time and improving transparency.
“The objective has been to simplify processes and reduce the amount of time needed to register issuances. It has been proven that the use of blockchain technology can improve efficiency in terms of time and resources, as well as increase the security and traceability of processes,” the CNMV said in a statement.
The incentive has successfully accomplished the proof-of-concept verification, which included the registration and emission of warrants. It was demonstrated that the process, which usually takes more than a week, can be performed within 48 hours due to the integration of blockchain technology. The processing time was decreased by more than 70% because of the interconnection of all systems, automatic verification of requirements and transparency.
Taking into account the actual results, CNMV has shown a strong intention to examine all possible options of fintech use and continue further development of this project. World’s largest banking and financial institutions participating in the pilot such as BME, Banco Santander, BBVA, and Société Générale also expressed their support for the future development of this joint venture.
It is worth mentioning, that this is not the first time that government agencies have tried to experiment with this financial technology. The European Commission and the European Union Intellectual Property Office (EUIPO) have recently arranged a blockchain hackathon aimed at finding solutions to prevent counterfeiting goods within the borders of the European Union. When the contest finished, there were ready several effective solutions for customers and law enforcement agencies to fight piracy and counterfeiting.