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BNY Mellon set to be an early adopter of Equilend's single-source distributed ledger technology (DLT) platform for securities lending

BNY invests minorly in Equilend's securities lending platform, mirroring last year's private equity acquisition by Equilend, as confirmed yesterday.

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BNY Embraces Equilend's 1Source DLT Securities Lending Platform as Early Adopter
BNY Embraces Equilend's 1Source DLT Securities Lending Platform as Early Adopter

BNY Mellon set to be an early adopter of Equilend's single-source distributed ledger technology (DLT) platform for securities lending

In the ever-evolving world of finance, a new player is set to make waves with its innovative approach to securities lending—1Source, a distributed ledger technology (DLT)-based platform developed by Equilend.

1Source is designed to streamline securities lending by digitising and automating processes, thereby improving efficiency, transparency, and risk management in collateral management and securities lending workflows. The platform aims to reduce reconciliation issues and operational risks by facilitating real-time data sharing between lending parties.

Equilend, the company behind 1Source, has recently secured a minority investment from BNY. This investment marks a significant step in the growth of 1Source, with BNY set to be among the initial users of the DLT-based securities lending solution.

Collateral management is a significant use case for institutional DLT, and 1Source is no exception. The broader area of collateral management is being explored extensively in various institutions, with major post-trade utilities and clearinghouses like Eurex Clearing and Euroclear investigating DLT-based infrastructure for collateral optimisation, real-time settlement, and regulatory compliance.

The role of regulatory bodies, such as the CFTC in the United States, is crucial in overseeing derivatives, securities lending, and collateral practices. The CFTC has announced plans to conduct a tokenized collateral pilot following industry recommendations, potentially influencing how new DLT platforms like 1Source comply with evolving regulations.

While the planned launch of 1Source was delayed from late last year, the search results do not contain specific or recent information regarding the current status or future potential of the platform. For the most up-to-date and detailed insight, it is advisable to consult official releases or industry analyses published after mid-2024.

In conclusion, 1Source represents a promising development in the field of securities lending and collateral management. By leveraging DLT, it aims to provide a single source of truth for data, revolutionising the way securities lending is conducted and potentially reshaping the collateral management landscape.

[Image Credit: JHVEPhoto]

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