The STO platform Cashlink has partnered with FinTech CashOnLedger to put securities trading on the blockchain. The cooperation now enables peer-to-peer transactions of digital securities. The settlement takes place with the help of smart contracts and almost in real time. Digital versions of fiat money such as the euro, US dollar or Swiss franc are also used. CashOnLedger uses a partner’s e-money license.
Smart contracts, blockchain, e-money: share trading in a new guise
The cooperation should result in several advantages for the user. On the one hand, the blockchain’s general value proposition is that fewer intermediaries will hold their hands when Alice executes a transaction with Bob. For securities trading, these intermediaries exist in companies that deal with matchmaking, clearing and settlement. This not only costs money, but also time. Classic securities transactions can take several hours, sometimes days.
The peer-to-peer transactions, which enable Cashlink and CashOnLedger, contrast traditional processing with a (cost) efficient model:
“The transaction of the digital security is peer-to-peer: To do this, the buyer uses CashOnLedger to send the amount in the form of the digital euro to the smart contract, which also automatically initiates the transaction of the digital security”