Distributed ledger platform HQLAᵡ recently launched its agency securities lending offering and has passed the €1 billion mark in outstanding balances. BNY Mellon, Goldman Sachs, and HSBC were the initial banks that participated.
HQLAᵡ went live with its core securities lending offering in 2019, initially targeting banks looking to swap collateral amongst themselves. The pilot agency transaction took place almost two years ago. It expands the service to asset managers with the banks acting as their agents.
From the start the company has addressed a pressing need. Collateral is locked in numerous custodian silos and transactions take two days to settle. HQLAᵡ has partnered with triparty agents and custodians so the collateral stays put, but the ownership record – a digital collateral record (DCR) – is transferred via its DLT platform. That makes intraday delivery versus delivery (DvD) settlement possible.
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