Eurex Clears First Live Transaction on DLT-Based Collateral Platform

This week, Eurex Clearing became the first clearing house to complete a live transaction on a DLT-based system. Unlike other projects, it didn’t rely on tokenizing collateral and moving it onchain.

Stablecoins keep dominating earnings calls. Next up: Western Union. On Monday, Devin McGranahan, CEO of one of the payment giants most exposed to stablecoin disruption, said they’ve “been pleasantly surprised at how much the phone has been ringing since Circle went public”.

With the GENIUS Act now law, Western Union is exploring stablecoins on two fronts: using them for treasury operations and turning its global network into a fiat-to-crypto on- and off-ramp. More details will be shared at the company’s Investor Day on Nov 6.

Today, we’ll also talk about:

  • Eurex clears first live transaction on DLT-based collateral platform

  • SWIFT targets 2026 for blockchain transactions

  • Bitpanda partners with UAE-based RAKBANK for crypto trading

HIGH SIGNAL NEWS

CAPITAL MARKETS

Eurex Clears First Live Transaction on DLT-Based Collateral Platform

The world’s first: This week, Eurex Clearing became the first clearing house to complete a live transaction on a DLT-based system. Unlike other projects, it didn’t rely on tokenizing collateral and moving it onchain. Instead, it created a digital record while keeping the collateral with its original custodian.

Why it matters: Traditionally, moving collateral between Central Securities Depositaries (CSDs) and custodians could take hours or even days. The system provides a new way to meet urgent margin calls in near real time by mobilizing collateral digitally without physically moving the securities. This reduces reliance on cash and helps lower systemic risk during stressed conditions.

  • “Clients have long faced fragmented collateral custody setups where collateral securities couldn’t easily be used across locations,” Dr. Efthimia Kefalea, Head of Derivatives Clearing Development at Eurex Clearing, told Blockstories. “With this setup, they can leave assets where they are and still post them as margin collateral to the CCP within minutes, without costly links or manual transfers.”

  • A top-tier player: This launch is noteworthy as Eurex Clearing is one of the leading, systemically important Central Counterparties globally, consistently ranking among the top three worldwide by notional volumes. Since January 2012, it has been fully owned by Deutsche Börse Group.

From testing to approval: Given Eurex’s scale, launching a DLT-based service required BaFin’s regulatory green light, which was granted in November 2024. The platform went live on June 30, and just weeks later J.P. Morgan executed the first transaction on behalf of its client PGGM, a major Dutch pension fund investor.

  • “We did a very thorough risk analysis together with our partners and legal advisors to make sure this new technology doesn’t introduce additional risks for a CCP,” said Dr. Efthimia Kefalea. “That’s why we intentionally chose a model without tokenization. The legal nature of the assets remains entirely unchanged – only their mobilization is recorded digitally – which was crucial to ensure regulatory compliance.”

How the flow works:

  • Creating the record: A clearing member such as J.P. Morgan, or one of its clients like PGGM, holds securities at a custodian of choice connected to the HQLAx digital network. Instead of tokenizing the asset, HQLAx creates a Digital Collateral Record (DCR), representing the security without altering its legal nature.

  • Verifying and tracking: HQLAx coordinates the process, while Clearstream International acts as the trusted third party maintaining the golden record, the legally recognized golden source of truth for ownership and collateral asset location.

  • Posting the collateral to Eurex Clearing: Once Clearstream confirms the transfer, the collateral becomes available to Eurex Clearing. The clearing member posts it to meet margin requirements, and it is processed like any other collateral.

Next steps: With the service now live, Eurex aims to onboard more clearing members and their clients.

  • “The clients of our clearing members can benefit from the service without needing to join the HQLAx ecosystem directly, which simplifies adoption further,” noted Dr. Efthimia Kefalea. “Several institutions are already reviewing the service, with more onboarding expected soon. Our next focus is on exploring how this powerful technology can further enhance our broader service landscape, driving innovation, improving efficiency, and creating new value across the clearing ecosystem.”

Federica Gamen is a lawyer at international law firm Clifford Chance, based in Luxembourg. She advises leading financial institutions on capital markets transactions and digital asset infrastructure.

HQLAx’s model stands out for avoiding the legal complexities that have slowed many tokenization projects. By decoupling title transfer from the physical movement of assets, it gives market participants near-instant access to collateral while staying within existing custody and regulatory frameworks.

Trade formation happens off-chain under established contractual agreements, such as the English law GMSLA, and is executed on venues like Eurex Repo or other multilateral trading facilities (MTFs). HQLAx itself is not part of trade formation but delivers an innovative, widely recognised post-trade settlement solution.

This approach offers a practical way for institutions to capture blockchain efficiencies, especially in post-trade settlement and collateral mobility, without the legal and operational hurdles of full tokenization. While both models have their place, HQLAx is particularly well suited for players seeking precision, speed, and compatibility with today’s infrastructure.

TOKENIZATION

SWIFT Targets 2026 for Network Updates to Support Blockchain Transactions

Updated guidelines: On July 18, SWIFT shared a preview of planned updates to its core messaging standards, both the long-standing MT format and the newer MX (ISO 20022) messages, to pave the way for handling transactions linked to blockchain networks. While the technical go-live was originally planned for November 2025, it has now been postponed by a year.

  • “Updating messaging standards is one thing, but the entire flow management still needs to be implemented. However, SWIFT has now entered a production rollout phase,” explains a source familiar with the matter.

Why it matters: Every day, banks around the world rely on SWIFT messages to move money and settle trades. The older MT format, used since the 1970s, and the newer MX standard are the common language behind trillions of dollars in transactions. Enabling these messages to recognize blockchains and digital cash means banks can handle tokenized assets over SWIFT without ripping out their existing systems, keeping today’s processes running while preparing for a more digital, ledger-based future.

What’s changing under the hood: To make this possible, SWIFT plans to update its securities settlement messages with two extra data fields: a Digital Ledger Identifier (DLI) to show which blockchain or digital cash system is used, and a Digital Token Identifier (DTI) to specify the tokenized asset or stablecoin.

  • “Beyond messaging, SWIFT has also spent the past two years building the underlying infrastructure to actually move tokenized assets from point A to point B, coordinating all actors across the value chain,” an industry source notes.

Industry expectations: For many financial institutions these updates are highly anticipated. “A handful of global banks have built their own solutions, but most are waiting for a common, interoperable standard,” the source adds. “SWIFT’s approach lowers the barrier to entry, letting them participate in tokenized settlement without major system changes.”

Three key workstreams: In order to turn these planned updates into real-world solutions, SWIFT is testing their use across three main areas:

  1. Post-trade interoperability: Making events like bond redemptions and delivery-versus-payment work seamlessly across legacy and blockchain settlement systems.

  2. Reducing FX settlement risk: Using hybrid DLT models to improve visibility, liquidity management, and synchronized settlement in cross-currency trades.

  3. Enabling fiat payments for onchain activity: Automating how blockchain-originated payment instructions are routed through fiat networks.

Sibos approaching: These developments are expected to take center stage at Sibos, SWIFT’s flagship event held this year in Frankfurt at the end of September. According to several sources, SWIFT intends to use the occasion to demonstrate how its updated transaction flow will function in practice, marking a key milestone after years of experimentation.

Zakaryae Boudi is the CEO of FeverTokens, a company specialized in designing smart contracts for traditional institutions, and Chair of the Tokenized Economies Institute.

Tokenization is moving beyond pilots, but the industry is still building in fragments. Platforms don’t talk to each other, leaving assets locked in separate systems and limiting their usefulness.

Addressing this gap requires building shared infrastructure that allows different systems to connect, comply with regulations, and evolve together. This is the direction that major players such as banks, SWIFT, and market infrastructures are taking.

Interoperability is not just a technical issue, it also involves aligning rules, governance, and incentives across jurisdictions. As tokenized finance expands, the ability to connect assets, identities, and settlement systems in a secure and compliant way will be key to scaling.

A conversation with Lukas Enzersdorfer-Konrad, Deputy CEO at Bitpanda, about their latest moves in the UAE.

  1. White House Crypto Report — The long-awaited 168-page report outlines a coordinated federal strategy for crypto, stablecoins, and tokenized assets.

  2. From Hype to Hazard: What Stablecoins Mean for Europe (ECB) — ECB adviser Jürgen Schaaf warns that the growing dominance of U.S. dollar stablecoins risks undermining euro monetary sovereignty.

  3. 24/7 Capital Markets: Value That Goes Far Beyond Opex (Canton Network) — Explores how always-on settlement could reshape capital markets by improving collateral mobility, reducing intraday liquidity needs, and cutting operational risk.

What do you think of today's briefing?

Login or Subscribe to participate in polls.

Disclaimer: The information provided in the Institutional Briefing by Blockstories does not constitute investment advice. Accordingly, we assume no liability for any investment decisions made based on the content presented herein.

Reply

or to participate.