On 9th August, global fintech giant Broadridge Financial Solutions, Inc. has announced its collaboration with the world’s largest private bank UBS to its transformative distributed ledger repo (DLR) using blockchain technology.

Adding UBS (The United Bank of Switzerland), Broadridge’s DLR platform will be included 20 out of 24 primary dealers and leveraged it’s fixed income that processed over $6T in average daily volume. The addition also speed up the expansion of the DLR network.

“This partnership reinforces our overall digital strategy, leveraging new technologies aimed at reducing risk and improving efficiencies in the financial markets,” said Paul Chiappetta, Americas Chief Operating Officer of Group Treasury at UBS AG.

Earlier in June, the launching of DLR platform allowed market participants to agree, execute and settle ledger repo transactions on a decentralised platform. The President of Capital Markets at Broadridge, Vijay Mayadas stated, “In the first weeks since launch, DLR has executed $35B in average daily volume- a testament to the success of the platform, which we expect to continue to grow as additional clients join the platform.”

Using smart contacts from Blockchain consultants named Digital Asset and VMware Blockchain, the global firm can transfer without physically exchanging, the ownership of underlying securities on the platform. Generally, in ledger repo market, most of the firms swap collateral in exchange of cash on a bilateral basis.

According to Vijay Mayadas, UBS will be profited from the ability to exchange repos using their distributed ledger technology. It will bring “enhanced liquidity, reduction of risk and operational efficiencies” to the whole business. Around $4.5 billion revenues New York based fintech firm Broadridge also carried out several pilots of the DLR platform ahead of inauguration with buy-and-sell side firms, such as Societe Generale and Natixis.

Joyashree Dey

CBW - External Analyst

INDIA