An innovative market solution for mobilising collateral
Reduction in intraday liquidity requirements
Scalable for future digitised assets
Reduction in fails
Regulatory transparency and risk compression post-default
Reduction in intraday credit exposures
Inter-operability across custodians
Transfer of ownership/pledge at precise times during the day
HQLAᵡ is an innovative financial technology firm founded by financial market practitioners. Our core clients are financial institutions active in securities lending and collateral management. Our shareholders include market- leading service providers in the global financial ecosystem.
HQLAᵡ and Deutsche Börse Group formed a strategic partnership for the creation of a joint operating model that provides market participants with improved collateral mobility across a fragmented securities settlement eco-system.
In the HQLAᵡ / Deutsche Börse Group operating model, there is no movement of securities between custodians. Instead, a digital collateral registry is used to record ownership of baskets of securities, whilst the underlying securities remain static in the custody location of the collateral giver. This enables platform participants to seamlessly execute capital efficient securities lending transactions for enhanced balance sheet optimization. 


LCR Management
Collateral upgrade transactions, evergreen / extendible maturities
Intra-day Liquidity Management
Transfer of ownership of baskets of securities intraday DvD
Margin Pledge
Pledge baskets of securities real-time
Mobilise hard-to-move assets


Transfer of ownership/pledge at precise times during the day
Regulatory transparency and risk compression post-default
Reduction in intraday liquidity requirements
Reduction in intraday credit exposures
Scalable for future digitised assets
Inter-operability across custodians
Reduction in fails

Why now?

Banks are facing increasing regulatory requirements for liquidity and capital, which are pressuring their earnings; there is a clear market need for a platform that can source and monetise liquidity efficiently, effectively, and transparently.

New Technology


  • The current collateral upgrade market relies on collateral to be managed across a fragmented custody network.
  • Settlement of transactions occurs at unspecified times during settlement windows
  • Current market practice is to settle collateral upgrade transactions either by:
    • Two Free of Payment (FoP) deliveries, or
    • Two Delivery versus Payment (DvP) settlements
  • Both settlement practices consume costly bank capital. The former consumes intraday credit due to timing and mismatches of unsynchronised (FoP) deliveries, and the latter consumes intraday liquidity due to the cash payment legs of (DvP) settlements.

New Efficiencies


  • HQLAᵡ uses new technology in an innovative way to enhance collateral mobility across the existing custodian/triparty landscape.
  • The HQLAᵡ operating model leverages distributed ledger technology to enable atomic Delivery verses Delivery (DvD) for baskets of securities residing at multiple custodians.
  • DvD reduces consumption of intraday credit and intraday liquidity, thereby providing capital savings.
  • Not only a date but also a time is specified for the start leg and end leg of a transaction.
  • HQLAᵡ could ultimately be used to enhance regulatory transparency over collateral chains, and potentially facilitate risk compression solutions for post default scenarios.
  • Initial roll-out in Europe, longer term strategy is to expand to APAC and US.

Learn more


Latest news

Frictionless transfers
April 27, 2020

Guido Stroemer, Co-Founder and CEO, presents HQLAᵡ, a startup leveraging blockchain technology to facilitate securities lending and collateral management operations. Interview.

From revolution to evolution
March 17, 2020

HQLAᵡ gets down to the nitty-gritty on how DLT technology integrates and is synchronised with the laws and regulations that apply to their scheme.

A solution for managing high-quality liquid assets: How distributed ledger technology can benefit the securities lending market
January 17, 2020

This paper was first published by Henry Stewart Publications in Journal of Securities Operations & Custody Volume 11 Number 4.