HQLAᵡ, J.P. Morgan, Ownera and Wematch have successfully demonstrated the technical feasibility of executing a delivery-versus-payment (DvP) repo transaction across two different distributed ledger technology (DLT) platforms at HQLAᵡ and J.P. Morgan.
The demonstration showed how rights to securities, recorded in digital collateral records (DCRs) on the HQLAᵡ ledger, and digital cash, recorded at J.P. Morgan, could be recorded and transferred using two different DLT platforms. The simulated transaction was negotiated in the Wematch trading front-end. Ownera connected Wematch and the two distributed ledgers using the open-source FINP2P routing protocol, ensuring the visibility of assets in Wematch, and coordinating the DvP settlement across the HQLAᵡ and J.P. Morgan platforms.
Guido Stroemer, Co-founder and CEO of HQLAᵡ, said, “Interoperability across distributed ledger platforms is paramount for broad market adoption of DLT in the securities finance industry. This test demonstrates not only the technical feasibility for interoperation across ledgers, but it also highlights the spirit of industry-wide collaboration.”
Ami Ben-David, Co-founder and CEO of Ownera, said, “This project is an important milestone for the industry. Our role in it is to serve as a neutral layer, seamlessly interconnecting the various platforms using open-source interoperability specifications to facilitate market collaboration and liquidity.”
Scott Lucas, Head of Markets DLT, J.P. Morgan said, ”Collaboration and interoperability between platforms will be key to enhancing the liquidity of tokenizated assets across the market. This is another step on that pathway.”
Joseph Seroussi, CEO & Co-founder of Wematch.live, said, “After years of hard work and massive investments from banks and tech companies, blockchain is moving from the labs to the Street. The industry is ready to adopt this game-changing technology and unleash the efficiency of DLT in traditional finance. We thank our partners J.P. Morgan, HQLAᵡ and Ownera for including us in this project.”
HQLAᵡ is a financial technology innovation firm that specialises in delivering liquidity management and collateral management solutions for institutional clients in the global securities lending and repo markets. Learn more at: www.hqla-x.com.
Ownera is a digital assets software company building the institutional inter-trading rails for a new multi-trillion-dollar digital securities market. The company led the creation of the open source FinP2P interoperability protocol and delivers FinP2P based network nodes and digital assets solutions to the financial industry, which enable global distribution and liquidity for digital securities. Learn more at: ownera.io.
Wematch is bringing innovation to the dealing process across the globe by tackling some of today’s financial institutions’ challenges: automation, cost savings, integration, best execution, productivity, compliance, and conduct risks. With a presence in London, New York, Paris, Tel-Aviv, and Singapore, our award-winning solutions bring the latest technology to traditionally voice-traded markets by optimizing the matching of interests on financing structures (TRS, Repos/SLBs), equity derivatives, and interest rates. With Wematch, you benefit from reduced expenses attached to trading flow, exceptional tracking, audit & compliance tools, and workflows, resulting in utmost confidence and control throughout the negotiation process. Learn more at wematch.live.