Investment Operations


DvP Repo DLT

HQLAX, J.P. Morgan, Ownera and Wematch have successfully demonstrated the technical feasibility of executing a delivery-versus-payment (DvP) repo transaction across two different distributed ledger technology (DLT) platforms at HQLAX and J.P. Morgan.

”Collaboration and interoperability between platforms will be key to enhancing the liquidity of tokenizated assets across the market. This is another step on that pathway,” Scott Lucas, Head of Markets DLT, J.P. Morgan said.

Analysts say the demonstration showed how rights to securities, recorded in digital collateral records (DCRs) on the HQLAX ledger, and digital cash, recorded at J.P. Morgan, could be recorded and transferred using two different DLT platforms. According to a joint statement, the simulated transaction was negotiated in the Wematch trading front-end. Ownera connected Wematch and the two distributed ledgers using the open-source FINP2P routing protocol, ensuring the visibility of assets in Wematch, and coordinating the DvP settlement across the HQLAX and J.P. Morgan platforms.

According to Guido Stroemer, Co-founder and CEO of HQLAX, interoperability across distributed ledger platforms is paramount for broad market adoption of DLT in the securities finance industry. “This test demonstrates not only the technical feasibility for interoperation across ledgers, but it also highlights the spirit of industry-wide collaboration.” Ownera agreed, stating that this project is an important milestone for the industry. “Our role in it is to serve as a neutral layer, seamlessly interconnecting the various platforms using open-source interoperability specifications to facilitate market collaboration and liquidity,” Ownera said.