DTCC Tokenized Repo White Paper Highlights Intraday Collateral Cost Savings

The U.S. Depository Trust & Clearing Corporation, DTCC, has published a white paper with Finadium stating that tokenization and distributed ledger technology can improve the efficiency of intraday repo transactions. DTCC, described as the world’s largest depository and clearing institution, presented a way to use collateral more quickly and flexibly in the repo market. The paper says applying distributed ledger technology could maximize intraday repo usage and cut daily collateral funding costs by as much as half. The discussion is expected to focus on reducing collateral-management burdens for financial institutions and improving short-term funding market efficiency. Source: mk.co.kr