Deutsche Bank Pilots Blockchain Technology To Provide Global Beneficial Ownership Transparency Solution

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Deutsche Bank Securities Services has successfully piloted a solution using distributed ledger technology (DLT) to enable further automation of custodial services – a solution which addresses the transparency requirements within many custodial services, such as around the tax processing of asset holdings at an ultimate beneficial owner level, and streamlines complex data and reconciliation processes for both the bank and its clients.

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“We are very excited about the opportunities that this solution, and the underlying technology, can bring for our future service model. We continue to remain focused on delivering products that increase efficiencies in the value chain, providing relevant and tangible benefits for our clients,” said Jeslyn Tan, Global Head of Product Management, Securities Services. London,

“At Deutsche Bank, we continue to demonstrate that innovation is at its best when aimed at solving our clients’ real-world problems and helping drive operational cost efficiencies,” commented Michaela Ludbrook, Global Head of Securities Services.

Currently, this level of information is not generally disclosed to or captured by, sub-custodians, with data provided in spreadsheets as and when needed and across multiple levels of disclosure. This leads to the manual collation of data and reconciliation challenges for the counterparts in the value chain. Deutsche Bank’s solution allows for sharing of the same information to authorised counterparts, removing duplication and, at the same time, permitting access to the beneficiary details to the relevant party only.

Importantly, the solution will function without disrupting the effective omnibus settlement account structure currently in place – which hugely benefits global custodians and/or counterparts up the value chain – minimising the impact on current infrastructure and operations.

The first implementation of the solution will help reform the shareholder information disclosure in Europe for global and sub-custodians, as set out in the Shareholder Rights Directive II, followed by tax processing automation and further product build-out.

After initial implementation in Europe, the solution will subsequently be rolled out to other regions in which Deutsche Bank Securities Services operates. Going forward, it could also be used by broker-dealers to provide desk-level transparency, especially important as the industry becomes more focused on disciplining inefficient trade settlement performance through measures such as settlement failure penalties, as stipulated in the Central Securities Depository Regulation.

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About Richard Kastelein

Founder and publisher of industry publication Blockchain News (EST 2015), a partner at ICO services collective Token.Agency ($750m+ and 90+ ICOs and STOs), director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of some two dozen Blockchain startups and has written over 1500 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat. Irish Tech News put him in the top 10 Token Architects in Europe.

Kastelein has an Ad Honorem - Honorary Ph.D. and is Chair Professor of Blockchain at China's first Blockchain University in Nanchang at the Jiangxi Ahead Institute of Software and Technology. In 2018 he was invited to and attended University of Oxford's Saïd Business School for Business Automation 4.0 programme.  Over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission's SME Instrument programme as a startup assessor and as a startup judge for the UK government's Innovate UK division.

Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London (5x), Manchester, Minsk, Nairobi, Nanchang, Prague, San Mateo, San Francisco, Santa Clara (2x), Shanghai, Singapore (3x), Tel Aviv, Utrecht, Venice, Visakhapatnam, Zwolle and Zurich.

He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com, and his work and ideas have been translated into Dutch, Greek, Polish, German and French. A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world. In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, 'The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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