28 December 2022
Clifford Chance advises HQLAˣ on an innovative cross-blockchain repo swap pilot
International law firm Clifford Chance advises HQLAX on their collaboration with Fnality to complete an innovative delivery-versus-payment (DvP) repo settlement proof of concept that promises to deliver efficiencies to the industry and move it closer to intraday settlement through the use of DLT.
The proof of concept involved Banco Santander, Goldman Sachs and UBS as project participants, and the collateral transfer was conducted on the HQLAX DLT, built on R3 Corda, with the funds transfer managed using the Fnality Payment System, built on Enterprise Ethereum. It successfully demonstrated how platforms operating on different DLTs can be connected to process such a transaction, allowing banks to reduce significantly their intraday liquidity requirements.
The Clifford Chance team, who ensured the technology aligned with existing legal principles, was led by London Partner Jeremy Walter, with the support of Senior Associate Diego Ballon Ossio.