Topic
The practice of pledging, valuing, substituting and moving assets to secure margin, repo and other financing obligations.
BNY says its overnight repo with Citadel Securities is the first on a major triparty platform to use a tokenized asset as collateral. The evidence of use so far is a single trade whose size BNY did not disclose.
Perspective Coverage
3 publishersReality
Nasdaq CEO Adena Friedman said tokenizing collateral could free tens of billions of dollars tied up across the financial system. Quartz reported Nasdaq's venture arm committed $100 million to Kraken's parent Payward in September, with tokenized Nasdaq-listed stocks due in the second quarter of 2027.
Perspective Coverage
4 publishersReality
Korea Securities Depository will accept government bonds at up to 98% of value as settlement collateral from late September, ending an all-cash deposit rule. How much foreign equity funds save depends on a daily ratio for stocks and on a second step that starts next month.
Reality
At the New York Fed's annual Treasury market conference, the vice chair tied three years of operational fixes to the market that prices every other asset, while calling the collateral handoff with the Federal Home Loan Banks unfinished work.
Reality
Nasdaq and The ValueExchange peg the operating-cost saving from tokenized collateral at about 12%, a ratio published without the cost base or the build cost that would turn it into money. Banks are being asked to treat it as a P&L line anyway.
Reality