BNY Mellon, Goldman Sachs, BNP Paribas Securities Services and Citigroup line up behind Luxembourg-based collateral process innovator HQLA-X, joining existing shareholder Deutsche Börse. Investment of 14 million euro is injected, and they will begin using the platform this year, enabling new services for their clients.
A press release Monday lines out the various roles of the new supporters:
• BNY Mellon will connect as both triparty agent and agent lender,
• Goldman Sachs will be principal,
• BNP Paribas Securities Services comes on as triparty agent, and
• Citibank joins as custodian.
Deutsche Börse stays on board as a “longtime strategic partner” since previously.
HQLA-X provides an operating model that uses distributed ledger technology (R3 Corda Enterprise) to make collateral assets much easier to transfer from a counterparty to another. This should enable more efficient collateral management for the banks’ clients.
PostTrade 360° interviewed HQLA-X head Guido Stroemer in connection with his participation in the PostTrade 360° Web Summit of June 2020.
“Our company has come a long way from starting out as a concept in an R3 Laboratory to partnering with Deutsche Börse and going into production with early adopters Commerzbank, Credit Suisse and UBS. Closing this strategic investment round with BNP Paribas Securities Services, BNY Mellon, Citigroup and Goldman Sachs is another major step towards market adoption,” says Guido Stroemer in the press release on the new agreement.