Broadridge Financial Solutions and wholesale payments platform Fnality have completed a test integrating Broadridge’s Distributed Ledger Repo (DLR) platform with Fnality’s Payment System (FnPS). The trial demonstrated real-time delivery versus payment (DvP) settlement for intraday repo transactions, using a digital representation of funds held at central banks, explains Broadridge in a press release.
The integration allows Broadridge’s DLR platform to use Fnality’s digital cash as a settlement rail. The funds, backed by deposits at central banks, aim to enable faster settlement and potentially reduce counterparty and operational risk. The test showed how tokenised assets and central bank-backed digital payments can function together within a regulated framework.
According to the firms, the solution could support more efficient liquidity management for repo transactions across both U.S. and European markets. Real-time settlement of repos is seen by many market participants as a way to improve collateral mobility and reduce settlement risk, particularly in intraday scenarios.
US and Europe
The test supports Broadridge’s ongoing efforts to expand its DLR platform across European markets. For Fnality, which currently operates in the UK, the initiative aligns with its goal of entering the US market and extending its blockchain-based payment system into new jurisdictions.
