Banks around the world have to comply with legislation to make sure they can raise cash when they need it. Laws that came into force since the financial crisis stipulate they have to own sufficient holdings of High-Quality Liquid Assets (HQLA). The ones you can sell quickly. To make it easier to sell these assets, today a new digital ledger initiative was launched, HQLAX.
In the first live transaction, Credit Suisse and ING swapped baskets of securities valued at EUR 25 million.
It’s not the first electronic solution – Bloomberg, for example, has an HQLA product. But it’s the first digital ledger solution, and it uses R3’s Corda technology.
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