Post-trade market infrastructure provider DTCC, the Depository Trust Clearing Corporation has announced the competition of the initial phase of its blockchain proof-of-concept trial in the clearing and settlement of repurchase agreement (repo) transactions.
In its announcement yesterday, the DTCC said it successfully completed the first leg of its proof-of-concept test using blockchain technology developed by New York-based industry firm Digital Asset. The test aimed to better manage the netting process for U.S. Treasury and Agency repurchase transactions in order to reduce the risks and capital requirements in the repo market.
Blockchain technology was picked as the viable core solution for repo agreement processing, due to the innovation’s potential for streamlining the clearing process of repurchase transactions while keeping up with growing transaction volumes. As CCN reported in March 2016, the Digital Asset-developed blockchain platform was integrated into the DTCC’s platform for testing.
Buying and selling firms can seamless access repo trade details over a blockchain before agreeing upon the trade in a quick manner, ultimately lowering risks and associated costs.
Following the successful ‘phase one’ testing, DTCC
Read more ... source: CryptoCoinsNews
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