Financial technology firm Broadridge plans to offer an extensive range of solutions to support the coming wave of tokenization in capital markets. On the tokenization front, it is best known for its Distributed Ledger Repo (DLR) solution that now processes $9 trillion in monthly repo transactions. With the DTC intending to tokenize Treasuries later this year, Broadridge plans to settle repo transactions instantly using stablecoins as well as extending the range of DLR supported assets to include deposits and others. Broadridge recently helped Societe Generale to issue a digital bond on the Canton Network.
While some analysts have portrayed tokenization as a threat to Broadridge – its stock price has declined 30% in the past six months – the company is embracing it as an opportunity. One of its major offerings involves proxy services which it provides to almost 80% of the Fortune 500. Equity issuers already have to support stocks that are directly registered and those held indirectly via the DTC. Going forward they will also need to support voting for tokenized stocks issued on various platforms and blockchains. Broadridge aims to solve the added complexity that tokenization brings for proxy, corporate actions, disclosures and other needs and support this for digital wallets.
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