In a monumental move, EquiLend has initiated the pilot phase for its 1Source Distributed Ledger Technology (DLT) platform. Slated for a full rollout in Q3 2024 and championed by financial titans like JP Morgan, Bank of America, and Goldman Sachs, 1Source is poised to redefine securities lending.
Historically, EquiLend has been a trusted source for trade records in the industry. Yet, a pervasive issue lingers. Multiple parties manually input trade data, often leading to discrepancies with rate changes or other modifications. 1Source steps in to address this by leveraging DLT, thus ensuring consistent records across parties, reducing the necessity for manual rectifications.
According to an independent consultant, the embrace of 1Source could result in a whopping $100 million savings for the industry. This underlines the capability of DLT in redefining operational efficiency.
While the primary aim of 1Source isn’t to align with the impending shorter settlement times in Q2 2024, its presence could inherently refine settlement processes, further boosting the sector's efficacy.
Ken DeGiglio, EquiLend’s CIO, encapsulated the company's aspiration for 1Source: "Our objective was to rectify industry challenges, facilitating businesses to maintain accurate, efficient trading." The launch of the 1Source pilot is a testament to this vision's industry alignment.
The DLT platform is constructed on Digital Asset's DAML tech, underlining EquiLend's dedication to leading-edge solutions. As part of the Canton Network, EquiLend promotes 1Source's interoperability with other DAML-driven solutions, amplifying its potential.
The pilot launch of EquiLend’s 1Source DLT platform heralds a bright horizon for securities lending. Addressing historical challenges with manual data handling, it pledges considerable savings and operational streamlining. While not explicitly intended for the soon-to-arrive shortened settlement periods, its advent could naturally expedite the industry. Endorsed by financial powerhouses and steered by visionary leaders, 1Source embodies the future of securities lending: one defined by innovation and efficiency.
