HomeBlockchainFnality and HQLAᵡ plan to introduce blockchain intraday repo in the current...

Fnality and HQLAᵡ plan to introduce blockchain intraday repo in the current year

-


Blockchain Firms Fnality and HQLAᵡ Complete Testing for Intraday Repo Settlement on Eurex Repo F7 System

Fnality and HQLAᵡ Successfully Test Blockchain Solution for Intraday Repo Settlement

In a groundbreaking development for the financial industry, bank-backed blockchain firms Fnality and HQLAᵡ have announced the successful completion of end-to-end testing to enable intraday repo settlement. This achievement paves the way for trades on the Eurex Repo F7 system to settle via the two blockchain networks, with a production launch scheduled in Q4, pending UK regulatory approvals.

The key advantage of this new system is the ability to settle trades at a specific time of day, allowing institutions to execute intraday repurchase agreements (repos) and have precise control over their liquidity. This is a significant improvement over conventional repos, where collateral settlement typically takes two days.

Simone Cortese, Fnality’s Director of Product Management, highlighted the benefits of this new system, stating, “That’s an unprecedented level of control of that collateral and cash management. That’s really the vision.”

The UK repo market, which is nearly as large as the EU’s, sees an average weekly outstanding balance of GBP 8,240 billion ($10.45 trillion) in 2023, with GBP 1,716 billion in daily trades, according to the London Reporting House.

The successful interoperability trials between Fnality and HQLAᵡ involved major financial institutions such as Goldman Sachs, Santander, UBS, JP Morgan, and WeMatch. The ability to transfer ownership of collateral and settlement tokens between separate blockchain networks is a significant achievement in the industry.

Fnality’s Atomic Settlement Protocol (ASP) and HQLAᵡ’s use of R3’s Corda enterprise blockchain have played a crucial role in enabling this interoperability. The collaboration between Fnality, Adhara, R3, and HQLAᵡ has also led to the development of the open-source Hyperledger Harmonia interoperability protocol.

In addition to the successful testing, Fnality is also exploring other avenues for expansion, including foreign exchange and payment versus payment (PvP) transactions. The company is in discussions with US regulators about a potential launch in the country, following an investment from the DTCC last year.

Overall, the completion of end-to-end testing for intraday repo settlement marks a significant milestone in the adoption of blockchain technology in the financial industry, with Fnality and HQLAᵡ leading the way towards a more efficient and secure financial ecosystem.

LATEST POSTS

Bitcoin briefly falls below $60,000 as SEC ends Ethereum investigation

Recent Developments in the Crypto Market: Mt. Gox Repayment, SEC Investigation, and ETF Filings The month of June has been a rollercoaster ride for Bitcoin,...

Bitcoin experiences largest drop in two months as liquidations increase

Crypto Market Faces Second-Worst Weekly Decline of 2024 Amid Cooling Demand for Bitcoin ETFs and Policy Uncertainty Cryptocurrency Market Faces Second-Worst Weekly Decline of 2024...

HC Capital Reports Sharp Declines in New Tokens on Binance in 2024, According to The Merkle News

Analysis of Newly Listed Tokens on Binance in 2024: Significant Declines and Key Factors The cryptocurrency market has been experiencing a significant downturn, with all...

June 2024 Blockchain Blog Update #4 by BakerHostetler

Recent Developments in the Crypto Industry Crypto Companies Make Major Moves in Licensing, Acquisitions, and Product Launches Several prominent crypto companies have recently made significant announcements,...

Most Popular