Commerzbank create a Digital Asset Joint Venture 360x
Deutsche Börse and Commerzbank have confirmed their participation in 360x, a new digital asset company located in Frankfurt. Carlo Kölzer, the venture’s CEO and founder, founded the FX firm 360T, which Deutsche Börse purchased in 2015 for nearly $800 million.
Kölzer is now employed by the company and serves as its Global Head of FX.
The emphasis will be on using blockchain to tokenize art and real estate, with a minimum viable product (MVP) expected later this year.
“Making It Investable – Bridging the Gap Between Asset Classes and Capital Markets” is our motto. We build open and liquid trading venues for assets that have never been available in digital markets,” said Kölzer, who added that more asset classes would be added in the future.
Any network that combines partners would be regulatory compliant and have an ‘orderly’ secondary market.
One of the main advantages of tokens is that they fractionalize properties, making an initial investment relatively small.
Although blockchain aims to build trustless markets, this is only possible with assets that are digitally native to the blockchain.
When you want to link a physical asset to a blockchain, you’ll need a third party to verify and validate the connection and ownership. Partners like the Deutsche Börse can help to build confidence.
In reality, for HQLAX, the digital collateral registry platform already serves a similar purpose.
Commerzbank’s function is that of a payment partner. Furthermore, a recent intern hinted that lending was part of 360x’s plans.
Lending is one of the most popular DeFi applications, particularly for cryptocurrencies.
Theodor Weimer, CEO of Deutsche Börse, said, “I am persuaded that Deutsche Börse must venture into new asset groups.” “We will see a large tokenization and digitization of properties that are not currently tradable in the future. We are developing 360X, a new creative platform for serial marketplace development, with our partners.”
Both Deutsche Börse and Commerzbank have a lot of experience with blockchain and distributed ledger technology in the enterprise (DLT).
Both companies recently took part in a German Bundesbank trial to settle blockchain securities transactions using the TARGET2 real-time gross settlement scheme (RTGS), which included a trigger mechanism.
Commerzbank is Germany’s premier Bank for the Mittelstand, with around 28,000 corporate client groups and approximately 11 million private and small-business customers.
Private and Small-Business Customers and Corporate Clients, the Bank’s two business segments, offer a diverse range of financial services. Commerzbank transacts approximately 30% of Germany’s overseas commerce in the corporate clients’ business and is present in nearly 40 countries. The German Mittelstand, major corporations, and institutional clientele are the emphasis of the Bank. Commerzbank assists clients with German connectivity and enterprises operating in specified future-oriented areas as part of its international operations. Private and small-business customers now have access to the services of one of Germany’s most modern online banks and personal advising support on-site, thanks to the integration of Comdirect. Its Polish subsidiary, mBank S.A., is a cutting-edge digital bank with roughly 5.5 million consumer and business customers in Poland and the Czech Republic and Slovakia. With about 46,500 workers, Commerzbank had gross revenues of €8.5 billion in 2021.