EquiLend has secured a minority investment from an affiliate of BNY, adding the global custodian to its group of financial backers. The investment strengthens ties between the two firms, which have collaborated for over two decades, and signals continued efforts to modernise securities finance infrastructure.
BNY joins eight other major financial institutions with strategic stakes in EquiLend. The group will advise on technology development aimed at improving efficiency and transparency in securities lending. While financial details have not been disclosed, the investment reflects ongoing interest in automation and post-trade standardisation.
1Source
As part of the partnership, BNY will also become an early adopter of EquiLend’s 1Source platform, a distributed ledger technology (DLT)-based system designed to create a single source of truth for securities finance transactions. The platform, developed in collaboration with industry participants, is intended to reduce inefficiencies and establish operational standards. Whether it gains widespread adoption remains to be seen, but it is positioned as a potential infrastructure layer for the market.
Nehal Udeshi, Head of Securities Finance at BNY, described the investment as a commitment to increasing efficiency in the sector. EquiLend CEO Rich Grossi pointed to the bank’s involvement as a sign of confidence in the firm’s long-term strategy.
