BNY Mellon and Goldman Sachs have successfully completed the industry’s first agency securities lending transactions using the HQLAᵡ distributed ledger technology (DLT) platform. As part of the combined series of 35-day term transactions, HQLAᵡ created ISIN-level securities trackers called digital collateral records (DCRs) from loaned securities it received from BNY Mellon, giving Goldman Sachs a digital copy of those trades. The ISIN-level DCRs are the first of their kind, representing specific ISIN quantities held in custody. These records will enable holders and agents to transfer ownership of any security on the HQLAᵡ distributed ledger, without the need for conventional settlement mechanisms. It also paves the way for eligible clients to reuse ISIN-level DCRs in onward collateral obligations at one or more triparty agents.
HQLAᵡ is a fintech firm specialising in delivering liquidity management and collateral management solutions for institutional clients in the global securities lending and repo markets. In addition to BNY Mellon and Goldman Sachs, investors include BNP Paribas Securities Services, J.P. Morgan, Citi, and Deutsche Börse.