ING, Credit Suisse complete $30mn securities lending transaction using blockchain

By Jonathan Dyble
Using the HQLAx R3 Corda platform, leading European banks Credit Suisse and ING have completed a $30mn live lending securities transaction, marking a si...

Using the HQLAx R3 Corda platform, leading European banks Credit Suisse and ING have completed a $30mn live lending securities transaction, marking a significant milestone for the use blockchain technology in traditional banking transactions.

The deal saw the two banks transferring Dutch and German government securities on the platform using digital collateral records (DCRs) that are used to enhance regulatory transparency, reduce risk and help institutions with the management of capital.

See also:

“The success of this first live transaction speaks to the potential for blockchain technology to help improve collateral fluidity by creating a more efficient, transparent, and cost-effective marketplace for liquidity transfers,” said Romain Dumas, Head of Rates Repo and Collateral Optimization at Credit Suisse Securities Europe.

“As a provider of Transaction Banking services, it is of paramount importance to engage in technological change to understand and anticipate the future needs of our sophisticated client base,” said Paolo Muzzarelli, Head of Transaction Banking Products within Financial Institutions at Credit Suisse Switzerland.

Whilst the success of this venture shows progress in the implementation of blockchain technology in financial operations, the technology still relatively remains in its infancy, with it unlikely to be used widely in the near future.

“This transaction proves the progress we are making towards deploying Distributed Ledger Technology for the benefit of our clients and society by making the financial industry more efficient and more resilient,” said Ivar Wiersma, Head of Wholesale Banking innovation at ING. “With this strong group of participants, together with ING’s technical contribution, I’m confident about the path to production of the HQLAx platform.”


Featured Articles

How digital twins unlock enterprises’ sustainability efforts

With sustainability increasingly on corporate and government agendas, over half of enterprises believing digital twin technology is critical to ESG efforts

Avast: Cybercriminals use common apps to lure victims

Two out of three cyber threats now leverage social engineering, with attackers using common applications from Microsoft and Adobe to distribute malware

World Password Day: Study shows enthusiasm for passwordless

Over half of global respondents told a study that they are excited about passwordless authentication options like biometrics, passkeys, or security keys

SAP to accelerate AI innovation with IBM Watson

AI & Machine Learning

Half of organisations fell victim to ransomware attacks

Cloud & Cybersecurity

Nike and Cognizant expand their relationship into technology

Digital Transformation