03/06/23

Digital collateral is a very interesting space. So outside of pure collateral optimization and thinking about trades and positions and that type of thing, digital collateral allows you to really manage costs and the end to end collateral cycle. So for example, you can tokenize collateral and through that immobilize the underlying securities at your custodian, thus eliminating settlements and other frictional costs involved in collateral management. It also lets you really dramatically speed things up. Because with digital collateral, you're not actually doing the collateral transfer. You're just transferring ownership rights. So for example, something like intraday repo now becomes a possibility.

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