Commerzbank Test Blockchain-Based Payment Solution

Commerzbank, Germany’s second-largest bank has developed a blockchain-based machine-to-machine payment solution. As a result of digitalization with DLT, machines are interconnected with each other to operate with a high degree of autonomy enabling automatic settlement of mutual payments.

To test this fully automated payment process, a transaction was placed between an electric charging point and a Daimler truck system. For this transaction, Commerzbank issued Euros on a blockchain and provided Daimler Trucks with digital assets to process the payment.

Source: Commerzbank’s press release report

The pilot successfully demonstrated that both charging and subsequent payment processes can be performed fully automatically without any human interaction generating efficiency gains. Current payment systems are not yet able to meet these requirements. The solution can also be leveraged in the chemical sector, in manufacturing or in the real estate.

Stephan Muller, Divisional Board Member Transaction Banking, Commerzbank said, “After having completely digitized securities transactions in past pilot projects, the focus is now shifting to DLT-based payment structures. As a bank, we see our mandate as creating new digital payment architectures for our clients”.

Commerzbank is the first German bank to develop a blockchain-based payment solution. One of the few banks who have been at the forefront of digital transformation and actively developing blockchain-based financial products.

Earlier this year, Commerzbank along with Bangkok Bank ran a pilot to test DLT-based trade finance solution with international clients. In another occasion, Commerzbank used DLT to execute a securities settlement with Deutsche Borse.