Securities market infrastructure giant plans to use distributed ledger for collateral management

Rage Comment : Liquidity Alliance is a collateral management cooperation alliance formed by securities custodians in 2013. All its member institutions and exchange operator Deutsche Börse Group jointly developed blockchain solutions to improve collateral management. The project participants will apply for government permission for this and use cases with relatively wide industry applicability as a breakthrough point.

Translation: Annie_Xu

A group of central securities depositories (CSDs) has teamed up with exchange operator Deutsche Börse to develop a blockchain solution for improving collateral management.

All Liquidity Alliance members, including custodians in Canada, Luxembourg, Norway and South Africa, have worked with the exchange to develop the “LA Ledger,” which is currently in the prototype phase and uses code from the Hyperledger project.

It is said that the companies involved in the project plan to start applying for relevant government licenses in the second quarter and obtain them by the end of the year.

Glenn Goucher

Glenn Goucher, President and Chief Clearing Officer of the Canadian Depository for Securities Limited, said:

“Through this project, we are collaborating on innovation and jointly developing cases for distributed ledgers in industries with a wide range of applicability.”

The project is the latest in a series of blockchain-related projects by Deutsche B?rse that began in early 2015. In late November last year, the company announced that it was working with the German central bank to develop a securities trading prototype.

In addition, hosting institutions in Russia and other countries also began testing the application of this technology last year, including independent and cooperative projects.