DTCC trials blockchain tech for repo market

The Depository Trust and Clearing Corporation (DTCC) announced it is working with blockchain startup Digital Asset Holdings on a blockchain-based system for the clearing and settlement of US repurchase agreements.

Under the agreement, the firms will develop and test a distributed ledger based solution to manage the clearing and settlement of U.S. Treasury, Agency, and Agency Mortgage-Backed repurchase agreement (repo) transactions.

“Distributed ledger technology has the potential to revolutionize certain post-trade processes that are inefficient and complex, and repos are a great place to start. There are absolute opportunities to make clearing in this area much more efficient, and we look forward to working with Digital Asset on this exciting project,” said DTCC president and CEO Mike Bodson.

The Depository Trust & Clearing Corporation is an American post-trade financial services company providing clearing and settlement services to the financial markets.