Today Broadridge announced that HSBC is the second bank to adopt its Distributed Ledger Sponsored Repo solution. UBS was the first client to sign up last month and has also used the core Distributed Ledger Repo (DLR) offering since 2021.
With the core DLR, repo trades are agreed, executed and settled on the ledger. Settlement triggers conventional payments. In contrast, Sponsored Repo is centrally cleared through FICC, the U.S. central counterparty. It allows sponsoring members to let their clients or group affiliates use FICC clearing.
Currently the Broadridge DLR solution has monthly volumes of around $1 trillion. Its workflow uses smart contracts developed with DAML, the language from Digital Asset.
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