- Broadridge Financial Solutions (BR, Financial) partners with Fnality to enable real-time settlement for intraday repo transactions.
- The collaboration leverages blockchain technology to improve efficiency and reduce risks in U.S. and European financial markets.
- Broadridge aims to expand its client base in Europe and prepare for future opportunities in the U.S. market.
Broadridge Financial Solutions, Inc. (BR), a leading global Fintech firm, has successfully completed a strategic collaboration with blockchain-based wholesale payments leader, Fnality, to enable real-time settlement for intraday repo transactions. This partnership demonstrates the interoperability between Broadridge's Distributed Ledger Repo (DLR) platform and Fnality's Payment System (FnPS), utilizing blockchain technology coupled with a digital representation of central bank funds.
This significant development aims to provide real-time delivery versus payment (DvP) settlement, which is crucial in enhancing efficiency, liquidity, and risk reduction across financial markets in the United States and Europe. The collaboration addresses an industry-wide demand for faster and more secure settlement processes, supporting Broadridge's efforts to expand its DLR client base in Europe.
According to Horacio Barakat, Head of Capital Markets Innovation at Broadridge, this initiative marks a pivotal milestone in extending the DLR platform's interoperability to digital cash solutions. The partnership not only simplifies liquidity management but also reduces operational risks and enhances the efficiency of repo transactions for financial institutions.
Michelle Neal, CEO of Fnality International, highlighted the importance of this advancement in strengthening the financial sector's growth and global competitiveness. Fnality's digital representation of central bank-held funds serves as a settlement rail for Broadridge's DLR platform, bringing greater efficiency and liquidity to the financial ecosystem.
The partnership's strategic focus will initially target U.S. and European financial markets, aligning with Fnality's expansion plans beyond the UK, with the U.S. identified as a priority market. This collaboration underlines Broadridge's commitment to leading innovation within the financial services sector, providing cutting-edge solutions to meet evolving market needs.
