In mid-2021, Broadridge launched its Distributed Ledger Repo (DLR) solution, quickly achieving $31 billion in average weekly volumes. That figure is now $50 billion daily or a trillion dollars a month. But the DLT platform is just getting started.
So far, UBS and Societe Generale are two banks that have confirmed they are active on the platform, and it’s expected the number of participants will reach double digits this year, with three currently onboarding.
A typical repo transaction involves one party borrowing cash by selling securities, often Treasuries. There’s an agreement to repurchase the securities at a slightly higher price in the near future. The net effect is a loan with the Treasuries as collateral. DLR enables the agreement, execution and settling of repo transactions on a single ledger.
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