Broadridge has integrated its Distributed Ledger Repo (DLR) solution with Fnality’s tokenized payment platform. Its first demonstration enables the settlement of intraday repo transactions using delivery versus payment involving central bank money.
Fnality, backed by 20 global institutions, recently confirmed it has applied for a US banking license after going live in the UK. It provides a tokenized settlement system for institutions, in which the shared tokens are backed by central bank reserves.
Repurchase agreements, or repos, enable those holding high quality assets such as Treasuries to swap them for cash temporarily to meet short term needs. The parties typically reverse the transaction shortly afterward, often overnight. The institution advancing cash earns interest, and covers its risk by temporarily owning the high quality collateral.
This demo represents a collaboration between two of the most promising institutional solutions in the tokenization space, with Broadridge already processing around $1.5 trillion in transactions monthly.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
