Today blockchain startup HQLAᵡ announced that JP Morgan has invested an undisclosed amount in its Series B extension. In January, Luxembourg-based HQLAᵡ disclosed a Series B funding round of €14.4 million ($17.5m) from BNY Mellon, Goldman Sachs, BNP Paribas Securities Services, Citigroup and Deutsche Börse Group.
The blockchain solution digitizes collateral sitting with a custodian using the HQLAᵡ digital collateral registry. By digitizing the process, settlement is significantly faster and doesn’t require the collateral to move from the original custodian. This enables banks to trade High Quality Liquid Assets (HQLA) with intraday settlement. It’s not an entirely decentralized process, with Deutsche Börse acting as a trusted third party between the custodians and the digital collateral registry. Money is saved by optimizing the collateral management process.
JP Morgan has been a Triparty Agent (custodian) connected to HQLAᵡ since the relatively early days. This year it also plans to connect its Agency Securities Lending business.
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