Nasdaq's Calypso Now Facilitates Blockchain-Powered Collateral Transactions
In a significant stride for the financial industry, the Canton Network's blockchain technology has been integrated with Nasdaq's Calypso platform. This partnership aims to revolutionise collateral mobility and automated margin management across multiple asset classes, bridging the gap between traditional finance and emerging digital markets.
Key benefits of this integration include 24/7 automated margin and collateral management, enhanced collateral mobility, and improved capital efficiency. Financial institutions can now unlock and redeploy previously locked collateral more efficiently in real-time, thereby improving capital allocation and liquidity management.
The combined platform offers seamless integration of traditional and digital assets, addressing the demands of an always-on financial ecosystem. Notably, institutions will benefit from enhanced security features inherent to blockchain technology, alongside better pricing and continuous capital deployment capabilities.
Industry leaders such as QCP, Primrose Capital Management, and Digital Asset have collaborated on this initiative, demonstrating broad industry support and readiness to scale next-generation digital asset infrastructure.
Melvin Deng, CEO of QCP, commented that automating collateral management on-chain allows clients enhanced security, better pricing, and the ability to deploy capital 24/7 across both traditional and digital assets. Traditional asset settlement, often associated with delays of a day or more, is now replaced by real-time movement of capital.
Major clients using Canton technology for collateral include Broadridge and Equilend. Broadridge's intraday repo solution DLR processes $1.5 trillion in transactions monthly. Equilend is developing 1Source using Canton technology.
Euroclear announced tokenized collateral trials with Digital Asset earlier this year, and the DTCC is planning to launch a tokenized collateral network, expected to integrate with Canton. Digital Asset, the developer of Canton Network, has been focusing on collateral management use cases.
Nasdaq Calypso, a capital markets and treasury solution offering, has integrated blockchain technology from the Canton Network. Collateral management is one facet of the platform, which now supports automated, round-the-clock margin and collateral workflows that operate continuously without manual intervention, covering a broad asset spectrum including crypto derivatives, fixed income, exchange-traded derivatives, and over-the-counter derivatives.
This integration is setting a new standard for capital efficiency by enabling real-time, automated management of margin and collateral across asset classes, leveraging blockchain’s transparency and immediacy to improve institutional risk management and operational resilience in a hybrid financial ecosystem.
[1] Nasdaq Press Release, "Nasdaq Calypso Integrates Digital Asset's Canton Network to Enhance Collateral Mobility and Capital Efficiency in Financial Markets," 2022. [2] Digital Asset Press Release, "Digital Asset and Partners Announce Collaboration with Nasdaq to Enhance Collateral Management on the Canton Network," 2022. [3] Canton Network Whitepaper, 2021. [4] Calypso Platform Product Information, Nasdaq, 2022.
- The integration of blockchain technology from the Canton Network into Nasdaq's Calypso platform is revolutionizing capital efficiency, enabling real-time, automated management of margin and collateral across multiple asset classes, including crypto derivatives, fixed income, exchange-traded derivatives, and over-the-counter derivatives.
- Financial institutions, such as QCP, Primrose Capital Management, and Digital Asset, have demonstrated their support for this initiative, recognizing the benefits of enhanced security features, better pricing, and continuous capital deployment capabilities inherent in blockchain technology.
- Industry insights suggest that this partnership will provide institutions with insights into the future of finance, bridging the gap between traditional finance and emerging digital markets, and unlocking new opportunities in the finance and technology industry.
