HQLAᵡ Surpasses €1 Billion in Securities Lending with Top Banks Participation

HQLAᵡ, a distributed ledger platform, has achieved a significant milestone by surpassing €1 billion in outstanding balances with its agency securities lending offering. The platform, which initially launched its core securities lending service in 2019 aimed at facilitating collateral swaps among banks, has now expanded its services to include asset managers, with banks acting as their agents. The first pilot agency transaction occurred nearly two years ago, marking the platform’s growth into this new sector.
The recent development involves Delivery versus Delivery (DvD) transactions, where Loan International Securities Identification Numbers (ISINs) are exchanged along with triparty collateral. Early adopters, including major financial institutions like BNY Mellon, Goldman Sachs, and HSBC, have lauded the platform’s ability to demonstrate the precise and simultaneous movement of collateral on a business-as-usual (BAU) basis, showcasing the practical benefits of blockchain-based solutions in the finance sector.
Furthermore, HQLAᵡ’s technological advancements extend beyond securities lending to encompass other financial services such as repo transactions and margin management. The platform’s innovation and growth have attracted significant investment, particularly noted in its recent Series C funding round led by HSBC, with contributions from several key players in the banking and financial industry including BNP Paribas, BNY Mellon, Citi, Deutsche Börse, Goldman Sachs, and JP Morgan. This influx of support underscores the industry’s confidence in HQLAᵡ’s distributed ledger technology and its potential to revolutionize securities lending and other financial services.