Yesterday securities finance firm Pirum said it successfully tested a distributed ledger technology (DLT) extension for its securities lending and repo solutions. Pirum provides post trade automation services, processing two million contracts worth $3.5 trillion daily. The UK arm of the company had revenues of £29 million ($36m) last year, with profits of £8 million ($10m).
The overall takeaway is that Pirum is not keen on DLT, with two exceptions. It’s happy to integrate with DLTs used by clients. And it sees benefits for tokenized assets. But not so much for conventional stock lending and repo.
The goal of the trials was to provide a golden record of trades. It ran various client and fintech working groups to debate the pros and cons of using DLT.
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