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ICMA explores DLT repo in new report
05 June 2026 Switzerland
Image: ARAMYAN/stock.adobe.com
The International Capital Markets Association (ICMA) has published the first of a two-part report on repos that make “some use” of blockchain or other digital ledger technology (DLT), a subject of much discussion.
Part 1 looks at the technology itself, the types of digitalised cash and assets that can be used in DLT repo, and how DLT was applied to repo between 2017 and 2025.
During this period, there were 34 publicised examples of DLT repo, the bulk of which happened in 2024.
According to the firm, most were proofs-of-concept, experiments, or simulations, rather than commercial transactions.
The second part of the report will be published after the summer and will focus on how and when DLT might be widely-adopted in the repo market.
Notable commercial usage of DLT repo was on Broadridge’s Distributed Ledger Repo (DLR) and J.P. Morgan’s Kinexys platforms.
By the end of 2025, it is estimated that the total average daily turnover on these two platforms may have reached, and possibly exceeded, US$3.7 billion per day, mainly on DLR.
While there was a significant uptick in growth of DLR in the second-half of 2025, ICMA says turnover in DLT repo still pales in comparison with the US repo market, which is measured in trillions.
It is also noted that the two dominant commercial DLT repo platforms vary significantly in terms of the degree of digitalisation, but that they both represent “walled gardens”, serving only the existing institutional customers of the operators.
While successful in this role for their operators, they do not constitute a competitive DLT repo market.
While efforts to achieve interoperability are being made by these and other platforms, there is a long way to go to get to a connected and competitive DLT repo market, the report says.
How the evolution of the DLT repo market may pan out, and what forms of digitalised assets will be exchanged in DLT repo, will be the subject of the second part of the report.
In particular, this will look at how DLT is being applied to the underlying settlement infrastructure upon which the repo market depends.
The critical section of this recent report considers the pre-trade, trade, and post-trade functions specific to repo, which DLT has already, or is likely to be, applied.
It concludes that pre-trade applications will be part of general collateral management operations and trading on a central limit order book is inherently unsuitable for distributed ledgers, as is the post-trade function of central clearing.
Instead, the report looks at the application of DLT to collateral management, including margining, and to settlement, notably the use of precise timing for intraday repo.
There may (or may not) be possibilities to widen the range of collateral and participation. Accordingly, the repo defines a DLT repo as a transaction for which some post-trade processes are performed on one or more distributed ledgers and/or where OTC trading may also take place on a distributed ledger.
The report has been produced by Richard Comotto, senior consultant to ICMA, with input from members of ICMA's Repo & Collateral and FinTech & Digitalisation teams.
Part 1 looks at the technology itself, the types of digitalised cash and assets that can be used in DLT repo, and how DLT was applied to repo between 2017 and 2025.
During this period, there were 34 publicised examples of DLT repo, the bulk of which happened in 2024.
According to the firm, most were proofs-of-concept, experiments, or simulations, rather than commercial transactions.
The second part of the report will be published after the summer and will focus on how and when DLT might be widely-adopted in the repo market.
Notable commercial usage of DLT repo was on Broadridge’s Distributed Ledger Repo (DLR) and J.P. Morgan’s Kinexys platforms.
By the end of 2025, it is estimated that the total average daily turnover on these two platforms may have reached, and possibly exceeded, US$3.7 billion per day, mainly on DLR.
While there was a significant uptick in growth of DLR in the second-half of 2025, ICMA says turnover in DLT repo still pales in comparison with the US repo market, which is measured in trillions.
It is also noted that the two dominant commercial DLT repo platforms vary significantly in terms of the degree of digitalisation, but that they both represent “walled gardens”, serving only the existing institutional customers of the operators.
While successful in this role for their operators, they do not constitute a competitive DLT repo market.
While efforts to achieve interoperability are being made by these and other platforms, there is a long way to go to get to a connected and competitive DLT repo market, the report says.
How the evolution of the DLT repo market may pan out, and what forms of digitalised assets will be exchanged in DLT repo, will be the subject of the second part of the report.
In particular, this will look at how DLT is being applied to the underlying settlement infrastructure upon which the repo market depends.
The critical section of this recent report considers the pre-trade, trade, and post-trade functions specific to repo, which DLT has already, or is likely to be, applied.
It concludes that pre-trade applications will be part of general collateral management operations and trading on a central limit order book is inherently unsuitable for distributed ledgers, as is the post-trade function of central clearing.
Instead, the report looks at the application of DLT to collateral management, including margining, and to settlement, notably the use of precise timing for intraday repo.
There may (or may not) be possibilities to widen the range of collateral and participation. Accordingly, the repo defines a DLT repo as a transaction for which some post-trade processes are performed on one or more distributed ledgers and/or where OTC trading may also take place on a distributed ledger.
The report has been produced by Richard Comotto, senior consultant to ICMA, with input from members of ICMA's Repo & Collateral and FinTech & Digitalisation teams.
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