Vermiculus Financial Technology, a Stockholm-based fintech focused on trading and clearing solutions, has partnered with consultancy GreySpark Partners to publish a new insight report titled Unlocking Efficiency in Collateral Management. The report examines the persistent inefficiencies in post-trade processes and positions tokenization as a more practical solution than distributed ledger technology (DLT) for collateral management.

Persistent Pain Points in Collateral Management

As global markets expand and become increasingly complex, collateral management and settlement remain critical bottlenecks in the trade lifecycle. The report highlights how firms continue to struggle with rising operational demands and compliance obligations. Despite early promises, DLT has yet to deliver meaningful improvements in post-trade efficiency, leaving many institutions seeking a more reliable and scalable path forward.

Tokenization as a Practical Alternative

The report outlines tokenization—the digital representation of assets within a centralized, robust, and scalable architecture—as a more immediate and effective solution. Unlike distributed systems, tokenization offers institutions the ability to modernize operations while preserving the stability and resilience of existing market structures. This approach also aligns more closely with current regulatory frameworks and risk management practices.

Vermiculus’ Collateral Management System

In parallel with the report, Vermiculus unveiled details of its Collateral Management System, already deployed in critical clearing and risk infrastructures. Built on a modular microservices architecture, the system supports real-time collateral operations and integrates seamlessly with market participants. Its flexibility allows firms to adapt to evolving instruments and regulatory requirements, addressing one of the most pressing needs of modern financial markets.

“Collateral management is at the centre of today’s market efficiency challenge. By combining GreySpark’s industry insight with our proven technology, we are showing the market a practical way forward,” said Lars-Göran Larsson, Industry Expert at Vermiculus.

The Role of Clearing Houses

The report also highlights how central counterparties (CCPs), with their critical role in ensuring financial market stability, are uniquely positioned to drive innovation in collateral management. Equipped with scalable, secure, and high-performance technologies, CCPs can lead the adoption of tokenization, unlocking efficiencies while safeguarding systemic resilience.

Positioning for Market Leadership

Founded in 2020, Vermiculus has quickly positioned itself as a technology leader in exchanges, clearing houses, and central securities depositories (CSDs). The company’s microservice-based solutions are designed for mission-critical operations, with its team having previously delivered more than 75 large-scale projects worldwide. By advocating tokenization as the next step in post-trade innovation, Vermiculus is strengthening its role in shaping how global markets adapt to rising complexity.

The full report, Unlocking Efficiency in Collateral Management, is now available for industry participants seeking insights into the future of collateral and post-trade operations.