The SEC-registered yield-bearing digital security can be used as a collateral asset, designed to give institutions a greater degree of flexibility to manage capital
The enhancement provides Clearstream clients with direct access to central bank money, combined with the established triparty repo collateral management framework
The offering will be available across the firm’s OTC business in spot, options, and structured products, and will allow institutions to post tokens already held as margin against positions in other assets
According to the firm, this milestone is an important step towards improving collateral mobility in the Canadian repo market with full automation of repo collateral and unlimited real-time substitution
Andy Smith, formerly of Northern Trust, brings 40 years of experience in securities lending and controls to the role, where he will contribute to the build-out of the firm’s advisory business
The increase reflects the continued evolution of tokenised market infrastructure and the expanding role of distributed ledger technology in modernising funding and collateral markets, the firm states
Through its membership, ISLA will contribute to discussions on the practical applications of distributed ledger technology and digital infrastructure within securities lending