HQLA^X, J.P. Morgan, Ownera and Wematch Demonstrate a Cross-Ledger Repo

HQLA^X, J.P. Morgan, Ownera and Wematch have successfully demonstrated the technical feasibility of executing a delivery-versus-payment (DvP) repo transaction across two different distributed ledger technology (DLT) platforms at HQLA^X and J.P. Morgan.

The demonstration showed how rights to securities, recorded in digital collateral records (DCRs) on the HQLA^X ledger, and digital cash, recorded at J.P. Morgan, could be recorded and transferred using two different DLT platforms. The simulated transaction was negotiated in the Wematch trading front-end. Ownera connected Wematch and the two distributed ledgers using the open-source FINP2P routing protocol, ensuring the visibility of assets in Wematch, and coordinating the DvP settlement across the HQLA^X and J.P. Morgan platforms.

Guido Stroemer, Co-founder and CEO of HQLA^X, said, “Interoperability across distributed ledger platforms is paramount for broad market adoption of DLT in the securities finance industry. This test demonstrates not only the technical feasibility for interoperation across ledgers, but it also highlights the spirit of industry-wide collaboration.”

Ami Ben-David, Co-founder and CEO of Ownera, said, “This project is an important milestone for the industry. Our role in it is to serve as a neutral layer, seamlessly interconnecting the various platforms using open-source interoperability specifications to facilitate market collaboration and liquidity.”

Scott Lucas, Head of Markets DLT, J.P. Morgan said, ”Collaboration and interoperability between platforms will be key to enhancing the liquidity of tokenizated assets across the market. This is another step on that pathway.”

Joseph Seroussi, CEO & Co-founder of Wematch.live, said, “After years of hard work and massive investments from banks and tech companies, blockchain is moving from the labs to the Street. The industry is ready to adopt this game-changing technology and unleash the efficiency of DLT in traditional finance. We thank our partners J.P. Morgan, HQLA^X and Ownera for including us in this project.”