BNP Paribas Securities announced a partnership with Digital Asset to develop a range of real-time trading and settlement applications using DAML-based smart contracts, the company announced on 15 September.
The new DAML-based applications will link BNP Paribas’ securities services to major global exchanges such as the Australian Stock Exchange, ASX, Hong Kong Stock Exchange or HKEX.
The apps will give market participants in the Asia-Pacific region real-time access to trading and settlement platforms based on blockchains from ASX and HKEX. BNP Paribas will specifically connect to the blockchain-based ASX stock transaction platform known as the Clearinghouse Electronic Subregister System or CHESS.
The announcement states that in addition to connecting to more blockchain-based platforms, the new DAML applications will also be available to customers in markets that do not integrate distributed ledger technology.
One of the apps includes a smart election service for corporate action. The app will be developed in 2021 to provide instant access to all data in the company’s retail chain, such as reinvestment of dividends or decisions on bids. This is expected to shorten processing times, increase operating efficiency and enable investors to make decisions based on the most relevant market data.
Introduced in April 2016, DAML stands for Digital Asset Modeling Language and is an expressive language designed for financial institutions to model and enforce agreements through DLT and smart contracts.
ASX and HKEX have become digital asset partners. In 2019, ASX and Digital Asset signed a memorandum of Understanding stating that Oslo Børs would maintain DAML as part of the CHESS blockchain register. ASX CHESS is reported to arrive in 2021.
In October 2018, HKEX entered into a partnership with Digital Asset to accelerate operations after trading and reduce liquidation risk.
DAML’s smart contract language is gaining traction in major global blockchain initiatives. On September 14, the Chinese national blockchain project Blockchain Services Network announced DAML support for developing decentralized applications on the platform. In early September, Singapore’s largest investment company Singapore Holdings issued the first digital bond supported by DAML.