Collateral Mobility Is About to Leave the Sandbox
Collateral mobility is transitioning from pilot projects to live production environments across capital markets, driven by tokenisation and distributed ledger technology.
A recent survey by Nasdaq and The ValueExchange found that firms manage an average collateral pool of USD 74 billion, with a quarter earning no return due to inefficiencies such as unremunerated overnight holdings or over-provisioning. Over-posting by an average of 6% occurs because firms cannot guarantee settlement timelines, leading to fragmented collateral management that increases operational costs. Better mobilisation and reduced over-provisioning could save a Tier 1 firm approximately USD 340 million annually, highlighting the need for more efficient collateral movement rather than better assets.
Live production examples demonstrate the shift from sandbox testing to operational use. Broadridge’s Distributed Ledger Repo platform processed USD 357 billion in daily repo transactions in June 2026, while BlackRock tokenised European money market fund shares on J.P. Morgan’s Kinexys platform in July 2026, enabling firms to earn yield on posted collateral. Deutsche Börse’s Eurex Clearing accepted margin collateral via distributed ledger in July 2025, allowing collateral to be used without physical movement between custodians, reducing settlement buffers.
The Depository Trust & Clearing Corporation (DTCC) conducted live production trades of tokenised assets in July 2026, involving over 30 firms including J.P. Morgan, Goldman Sachs, and BlackRock. These trades included collateral pledging and securities lending, with tokenised assets retaining the same investor protections as underlying securities. The DTCC Tokenization Service is expected to launch in October 2026, enabling institutions to tokenise assets while maintaining confidentiality through the Canton ecosystem, which supports privacy-sensitive transactions.
The trend reflects broader institutional adoption, with 52% of firms expecting to manage live tokenised collateral by the end of 2026. Tokenised workflows could reduce failed trades by roughly one in eight, while enabling collateral to move 24/7 instead of within limited business hours. Firms are initially testing intra-entity flows before expanding to external counterparties, with solutions like Fireblocks providing digital asset infrastructure to support these workflows while maintaining client control over keys and approvals.