One of the largest exchange organizations in the world, Deutsche Börse Group plans to develop a blockchain-based system for securities lending.
Following this purpose, Deutsche Börse has entered into a strategic partnership with the financial company HQLAX. They will use diagrams of blockchain startup R3’s Corda platform with technical support from financial management firm HQLAX to develop more efficient securities settlement.
The need for such a step in Deutsche Börse explains the fragmentation of the global securities system, which leads to higher transaction costs, while the flow of payments decreases.
According to Deutsche Börse Group, “these assets are in heightened demand due to the implementation of bank regulations for liquidity, mandatory clearing and margin requirements for OTC derivatives.”
Guido Stroemer, CEO of HQLAX, also commented future partnership. “Our goal is to mobilize liquidity across pools of collateral currently residing in disparate custody accounts around the globe,” he said.
Last year in partnership with banking giants, such as Credit Suisse and ING, HQLAX and R3 have developed and successfully completed transactions worth $30 million.