EquiLend, the major institutional securities lending provider, announced plans to use blockchain to create a “single source of truth” for securities finance transactions. Globally it processes $2.8 trillion in trades monthly on its main platform. Its directors include Bank of America, BlackRock, Credit Suisse, Goldman Sachs, JP Morgan, Morgan Stanley, State Street.
The new initiative 1Source aims to eradicate reconciliation breaks and settlement failures. In other words, where one counterparty believes the transaction details are different from the other. If distributed ledger provides a golden record of the transaction, this shouldn’t happen.
The solution will be open to all market participants and interoperable with any vendor or party interested in connecting. It’s currently in the design phase.
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