DTCC Tokenized Repo White Paper Highlights Intraday Collateral Efficiency

DTCC, the U.S. central depository and clearing institution known as one of the world’s largest settlement bodies, has published a white paper with Finadium on tokenization. The paper says distributed ledger technology could maximize intraday repo use and improve collateral management efficiency. It also presents an expectation that daily collateral funding costs could be reduced by as much as half. In the repo market, the speed and availability of collateral movement are directly tied to funding costs and liquidity management. DTCC’s white paper shows tokenization being examined as a tool to raise efficiency in depository infrastructure and short-term funding market operations. Source: mk.co.kr