Eurex Clearing has announced the launch of a Distributed Ledger Technology (DLT)-supported collateral mobilization service.

With regulatory non-objection from Germany’s Federal Financial Supervisory Authority (BaFin), the service is set to roll out in Q2 2025.

This initiative aims to streamline the management of securities collateral, making it instantly accessible and transferable regardless of physical location.

DLT-supported collateral mobilization powered by HQLAX and Clearstream

The service is being developed in collaboration with HQLAX and Clearstream, with J.P. Morgan acting as the pilot clearing member. Eurex Clearing clients will be able to mobilize collateral via custodians and central securities depositories (CSDs) on the HQLAX digital ledger, enabling efficient and cost-effective fulfillment of margin requirements set by central counterparties (CCPs).

Matthias Graulich, Member of the Executive Board at Eurex Clearing, said: “With this offering Eurex Clearing once again pioneers and upholds its status as the innovator in the CCP space. Eurex Clearing continues to invest in such advanced services, reflecting its commitment to providing cutting-edge solutions and services to its clients.”

Helen Gordon, Global Head of Derivatives Clearing at J.P. Morgan, remarked: “J.P. Morgan early on identified the benefits of using traditional assets in digital form to move cleared derivatives collateral and is pleased to see this regulatory milestone achieved. We look forward to the next phase of implementation and realizing the risk and optimization benefits associated with improved collateral mobility for us and our clients.”

Guido Stroemer, Co-founder and CEO of HQLAX, commented: “We are pleased to support Eurex Clearing in this pioneering initiative, which leverages our DLT platform to enhance collateral mobility and security for cleared margin.”

Marton Szigeti, Head of Collateral, Lending & Liquidity Solutions at Clearstream, added: “We are thrilled that our colleagues from Eurex Clearing add the central clearing element to HQLAX’s collateral offering, further strengthening Deutsche Börse Group’s engagement. This collaboration underscores Clearstream’s commitment to providing efficient collateral solutions, shaping a secure digital financial landscape.”