Use of distributed ledger technology in post-trade processes

April 12, 2021

HQLAᵡ referenced in the recent ECB AMI-SeCo report on European stakeholders’ use of distributed ledger technology (DLT) in securities post-trade processes.

Tokens to denote baskets of bonds for collateral swaps via HQLAᵡ (p.33)

The HQLAᵡ DLT-based platform allows for collateral swaps in the securities lending market. The securities are issued in a conventional environment and grouped in the form of baskets of securities. For the purpose DvP, the baskets are tokenised, i.e. represented on distributed ledgers by tokens. This process is aimed at eliminating the operational requirement to physically move securities across securities settlement systems.