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Blockchain for Collateral Management and Mobility: An Institutional Killer App?

August 29, 2025 | 4 minutes reading time | By John Hintze

A DeFi collateral transfer network “highlights the power of regulated digital infrastructure to support institutional-grade needs.”

Ever since the global financial crisis, regulatory and risk management requirements have placed heavier burdens on collateral management and mobility. Financial market utilities’ efficiency-enhancing initiatives are now leading into a potentially significant institutional use case for distributed ledger technology.

DLT, or blockchain, underlies cryptocurrencies and has been put to a number of financial-infrastructure tests, with asset-tokenization efforts currently proliferating. “One of the best use cases for tokenization is the modernization of the post-trade movement of collateral that backstops trading activity,” says a Futures Industry Association report, Accelerating the Velocity of Collateral. “The trading of derivatives drives the movement of collateral worth billions of dollars every business day.”

As FIA president and CEO Walter Lukken asserted in a June speech, “This technology could lead to huge improvements in collateral management and settlement. It will make it possible to move collateral and meet margin requirements on holidays and weekends when banking systems are closed. It also could play an important role in...

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Blockchain for Collateral Management and Mobility: An Institutional Killer App?

August 29

A DeFi collateral transfer network “highlights the power of regulated ...

Digital Assets
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