5 March 2018
Clifford Chance advises HQLAx on the first live securities lending transaction settled using R3’s Corda blockchain platform
International law firm Clifford Chance has advised HQLAx on the first live securities lending transaction settled using R3’s Corda blockchain platform. This transaction brings the HQLAX–developed collateral lending application on Corda (CorDapp), one step closer to production.
In this groundbreaking transaction, Credit Suisse and ING agreed to transfer legal ownership of Dutch and German government securities using the HQLAx CorDapp while the underlying securities remained static within unique DCR-linked custody accounts. This approach can ultimately help enhance regulatory transparency, mitigate systemic risk, reduce operational risk, and help financial institutions manage capital more efficiently.
The Clifford Chance team, which developed the legal architecture to marry legal principles and techniques with blockchain technology, was led by finance partner Jeremy Walter and fintech co-lead Peter Chapman. Both are part of Clifford Chance's global fintech practice, which was recently ranked in Band 1 by Chambers & Partners.