Switzerland-based bank SIX Securities Services announced that it has developed a distributed ledger technology (DLT)-based prototype for bond issuing solution, Finextra reported.

The blockchain prototype covers bond lifecycle that enables issuing bonds as smart contracts that provide specific dates when coupon payments are made, the amount involves and how/when repayments occur.

The prototype also includes linking smart contracts to the chain where buyers can allot money by paying through digital currency to the address of the bond.

“Though still some way off for market-wide adoption, we are firm in the belief that the potential shown here is promising - for us - and for the industry as a whole. I am convinced that what we have achieved with this approach could revolutionize several processes used by the Swiss financial services industry while sustainably securing our role in the provision of services throughout the Swiss value chain,” Thomas Zeeb, CEO SIX Securities Services, stated.

Last year September, Six Securities teamed up with Digital Asset Holdings to explore the application of distributed ledger technology in financial markets.