HQLAX, J.P. Morgan, Wematch and Ownera confirm feasibility of cross-ledger DvP repo
06 October 2022 Luxembourg
Image: Shutterstock
HQLAX and J.P. Morgan, working with Wematch and Ownera, have announced a successful demonstration that confirms the technical feasibility of processing a DvP repo trade across two different DLT platforms.
This simulated transaction demonstrated how ownership rights in securities recorded in digital collateral records held on HQLAX’s DLT-based ledger could be exchanged simultaneously against digital cash recorded on J.P. Morgan’s DLT-based book of record.
The trade was executed using Wematch’s trading platform, with Ownera providing connectivity across Wematch’s front-end systems and the two distributed ledgers using FINP2P routing protocol.
Commenting on the simulated transaction, HQLAX CEO and co-founder Guido Stroemer says: “Interoperability across distributed ledger platforms is paramount for broad market adoption of DLT in the securities finance industry. This test demonstrates not only the technical feasibility for interoperation across ledgers, but it also highlights the spirit of industry-wide collaboration.”
J.P. Morgan’s head of markets DLT, Scott Lucas, says: ”Collaboration and interoperability between platforms will be key to enhancing the liquidity of tokenised assets across the market. This is another step on that pathway.”
Wematch CEO and co-founder Joseph Seroussi adds: “After years of hard work and massive investments from banks and tech companies, blockchain is moving from the labs to the street. The industry is ready to adopt this game-changing technology and unleash the efficiency of DLT in traditional finance.”
According to Ami Ben-David, co-founder and CEO of Ownera, “This project is an important milestone for the industry. Our role in it is to serve as a neutral layer, seamlessly interconnecting the various platforms using open-source interoperability specifications to facilitate market collaboration and liquidity.”
This simulated transaction demonstrated how ownership rights in securities recorded in digital collateral records held on HQLAX’s DLT-based ledger could be exchanged simultaneously against digital cash recorded on J.P. Morgan’s DLT-based book of record.
The trade was executed using Wematch’s trading platform, with Ownera providing connectivity across Wematch’s front-end systems and the two distributed ledgers using FINP2P routing protocol.
Commenting on the simulated transaction, HQLAX CEO and co-founder Guido Stroemer says: “Interoperability across distributed ledger platforms is paramount for broad market adoption of DLT in the securities finance industry. This test demonstrates not only the technical feasibility for interoperation across ledgers, but it also highlights the spirit of industry-wide collaboration.”
J.P. Morgan’s head of markets DLT, Scott Lucas, says: ”Collaboration and interoperability between platforms will be key to enhancing the liquidity of tokenised assets across the market. This is another step on that pathway.”
Wematch CEO and co-founder Joseph Seroussi adds: “After years of hard work and massive investments from banks and tech companies, blockchain is moving from the labs to the street. The industry is ready to adopt this game-changing technology and unleash the efficiency of DLT in traditional finance.”
According to Ami Ben-David, co-founder and CEO of Ownera, “This project is an important milestone for the industry. Our role in it is to serve as a neutral layer, seamlessly interconnecting the various platforms using open-source interoperability specifications to facilitate market collaboration and liquidity.”
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