Broadridge sees growth potential in tokenization despite challenges

The post-trade giant's distributed ledger repo platform averaged $359 billion a day in September, and it is betting that tokenization adds business rather than replacing it Tokenization was supposed to be the thing that disrupted the plumbing of Wall Street. Broadridge, which builds a lot of that plumbing, is making a different case: the new pipes still need a plumber. According to a CNBC report, tokenization is creating more business for Broadridge, not less. The company’s Distributed Ledger Repo platform processed roughly $360 billion of tokenized collateral per day in September. That is a lot of money for a technology that skeptics still describe as experimental. The numbers on the ledger Broadridge’s Distributed Ledger Repo platform, known as DLR, averaged $359 billion in daily repo transactions during September. Across the full month, that added up to $7.5 trillion. A quick primer for anyone who doesn’t spend their weekends thinking about money markets. A repo, short for repurchase agreement, is a short-term loan where one party hands over securities as collateral and agrees to buy them back later. It is one of the quiet engines that keeps banks and dealers funded day to day. ...