Today London startup Finteum announced the latest successful trial of its blockchain intraday liquidity solution for bank treasury. Participants included Barclays, BNY Mellon treasury, Citi, Natwest and ten other banks, with Euroclear taking part for for non-DLT settlement.
So far, three of the banks have committed to going live on the platform in Q2 or Q3 2023. Over the last year, the solution has been extended from intraday FX swaps to include repo, so it now provides solutions for two common short term funding mechanisms for banks.
As interest rates rise with inflationary expectations, the interest costs associated with managing bank liquidity become more significant. And Finteum expects to save participant banks millions of dollars annually by reducing the liquidity buffer they need.
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