The Fuse Podcast: Distributed ledger technology and collateral mobility

Welcome to the latest episode of The Fuse Podcast. This time, Fuse leader Shruti Ajitsaria leads a fascinating conversation on how distributed ledger technology can help to enhance collateral mobility.

DLT is a method of recording asset transactions, such as securities, where details of the transaction are recorded in multiple places at the same time.

Collateral in capital markets includes equities and fixed income bonds, used primarily as a credit mitigant. But there are challenges in moving collateral between custodians and risks of failing to deliver. There is a need for more efficient collateral management, and that is where DLT comes in. By tokenizing collateral to enhance mobility without moving the underlying assets, DLT can be used for precise and efficient settlement.

To discuss this on The Fuse Podcast by A&O Shearman, we are joined by:

• Olly Benkert, co-founder and chairman of HQLAx, a Fuse cohort member who enhance efficiencies in the securities finance and repo industry using DLT
• Mathew McDermott, global head of digital assets at Goldman Sachs
• Phiippe Noeltner, partner at A&O Shearman specialising in debt securities issuance, fintech, derivatives and market infrastructure.

In the conversation, we cover the regulatory and legal considerations to support DLT-based collateral management, as well as the likelihood of market adoption and the future integration of DLT.