Repo stands for the clearing and settlement of repurchase, and agreement transactions. Over the next few months, DTCC will also determine whether the technology meets its integration requirements, and will decide in June 2017 whether to move ahead with deployment.
DTCC said for Reuters that the new technology developed with Digital Asset Holdings, New York-based startup, demonstrated that blockchain could be used to better manage the netting process for US Treasury and Agency repo transactions.
Currently, the company has entered the second phase of the project during which it will form a stakeholder group with some of the participants in the USD 3 trillion-a-day repo market, to collect their feedback on the blockchain system.
Digital Asset is led by former JP Morgan Chase commodities chief Blythe Masters. In 2016, it raised more than USD 60 million from a group of financial institutions including DTCC, Goldman Sachs Group and CME Group.
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