Reuters: State Street tests blockchain system for securities lending

State Street Corp (STT.N) has tested a blockchain system that it hopes can be used to streamline the securities lending process as the financial industry accelerates efforts to adopt the emerging technology.
The software, which was tested this year over the course of seven months, could be chosen as one of the company’s blockchain projects to be implemented in 2017, Hu Liang, senior managing director of the Emerging Technologies Center at State Street, told Reuters.
State Street is one of the largest custodian banks and securities lending providers globally. The blockchain system that it tested would transform the collateral posted by an investor to borrow securities from State Street’s clients into a digital token that could be used for other transactions.
This would create a digital, immutable record of how the collateral had been used and would make it easier and quicker for State Street to return the collateral to the borrower’s account once their lending position had been unwound.
The full article is available here.

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