It’s been four years since Broadridge’s Distributed Ledger Repo (DLR) solution went live. With banks using DLR to move money between group subsidiaries, transactions quickly raced past $30 billion daily. Over the next three years volumes grew to $50 billion daily or $1 trillion a month. Those figures are not to be sneezed at, but the growth rate was not massive because the number of institutions using the solution remained low. That started to change last year.
In yesterday’s earnings announcement, CEO Tim Gokey said daily volumes averaged $100 billion through much of 2024, and surpassed $200 billion this June. That’s equivalent to $4 trillion per month.
The technology driving this growth relies on blockchain infrastructure. The DLR solution locks and tokenizes the underlying Treasuries and uses smart contracts for the repo workflow. UBS was the first large bank to adopt the solution. Other participants that have acknowledged their involvement include HSBC, Société Générale and DRW. Gokey said Broadridge signed eight new clients during the last financial year, including some Tier 1 banks.
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