Capital markets News

Tradeweb inks blockchain deal with Alphaledger

tradeweb alphaledger blockchain

Today U.S. blockchain startup Alphaledger announced it is collaborating with Tradeweb Markets, the company that operates one of the main over-the-counter markets for fixed income securities. They plan to jointly develop new products using Alphaledger’s blockchain technology. 

This marks the second blockchain initiative for Tradeweb in the span of a month – it invested in Securitize, which operates the tokenization infrastructure for BlackRock’s first digital money market fund, BUIDL.

Tradeweb currently supports around $1.5 trillion (notional value) daily trading.

Alphaledger secures Series A funding

In addition to the TradeWeb deal, Alphaledger revealed its Series A funding round led by EJF Capital with support from KDX. According to PitchBook, the figure was $9.5 million after raising a seed round of almost $6 million in 2021.

We first wrote about Alphaledger in 2022, when it used its permissioned blockchain to issue the first blockchain-based U.S. municipal bonds. The company describes itself as providing an origination and clearing platform for fixed-income securities. Additionally, it facilitates municipal bond trading between two banks on its platform. One of its subsidiaries is a FINRA-registered broker-dealer, and another is a transfer agent. A group of former PIMCO employees founded the company.

Blockchain helps to add transparency, traceability and to expand access. One of Alphaledger’s goals is to enable a broader geographic distribution of municipal loans for risk reduction purposes. Otherwise community bank investors are subject to hyper-local environmental risks.

The concept was validated last month when JP Morgan was involved in a municipal bond issuance using its blockchain-based Digital Debt Service for the first time. This is part of the bank’s Onyx unit, which includes JPM Coinintraday repo and a tokenized collateral network.