Nasdaq has connected blockchain-based technology, the Canton Network, to its Calypso platform, facilitating end-to-end margin and collateral workflows.
Magnus Haglind
The move was developed in partnership with QCP, Primrose Capital Management and Digital Asset in a bid to highlight how “integration of on-chain capabilities alongside existing institutional workflows enhances collateral mobility across all asset classes for institutional market participants”.
Through the partnership Nasdaq Calypso will also expand its capabilities to support automated 24/7 margin and collateral management across assets.
These include crypto derivatives, fixed income, exchange-traded derivatives, and OTC derivatives.
Magnus Haglind, head of marketplace technology at Nasdaq, said: “Capital market infrastructure and the emerging digital asset ecosystem are on the cusp of a generational shift as they converge with faster settlement and 24- hour trading, driving a new operational paradigm for market participants.
“Financial institutions need to improve real time risk management and mobilise collateral to optimse capital and liquidity deployment. We are excited to work with our clients to deliver improved capital efficiency through this innovative solution.”
Nasdaq Calypso allows financial institutions to manage risk, margin, and collateral needs in an integrated environment.
Users of Calypso include banks, insurers, and other global financial institutions looking to process front-to-back office treasury workflows, manage risk, and meet regulatory reporting obligations.
This partnership makes the case for leveraging blockchain-based technology for collateral management in order to help financial institutions meet the demands for real-time capital efficiency, according to the firms.
Melvin Deng, chief executive of QCP, explained: “Automating collateral management on-chain allows us to offer our clients enhanced security, better pricing, and the ability to deploy capital 24/7 across both traditional and digital assets.”