Two assets exchanged so that each moves only if the other does, with neither leg in cash.
Live (limited)1
Why tokenise?
Draft analysis · not yet reviewed by the editor · updated 12 Oct 2026. The flows below are simplified for general understanding. Real implementations vary a great deal and are often far more complex.
Many deals swap one set of securities for another, with no cash involved: lending top-quality bonds against other collateral, or upgrading a pool of collateral. Today each side's securities settle separately, often at different custodians. On a shared ledger ownership of both baskets can change in one step, at an agreed time, without the securities leaving their custodians.
Improves an existing processSecurities-for-securities swaps are routine in securities lending and collateral management, and depositories already offer ways to link the two legs. What tokenisation adds is a single, simultaneous exchange of ownership across custodians that would otherwise need two separate settlements, plus precise timing. It is an upgrade to an existing process; the register's examples are a niche of basket swaps and early DTCC tests.
The problem today
Collateral is held in separate custodians and depositories, so swapping one basket for another means moving assets across a fragmented set of settlement systems, with the operational burden that brings.[1]
In most current practice the two legs of a collateral swap do not move at the same moment, leaving one side exposed to the other for part of the day.[2]
To cover that gap, counterparties often post cash collateral instead, which ties up capital and intraday liquidity, and slow, costly reconciliation follows the trade.[3]
Today vs tokenised (simplified)
End to end:same day to two days, as two separate settlements→one simultaneous transfer at a pre-agreed time · Sources give no measured timings for either lane; this is an approximation.
Todayend to end: same day to two days, as two separate settlements
Two banksAgree to swap a basket of top-quality bonds for a basket of other securities, for a set termminutes
Each bank's custodianReceives separate instructions for each leg, sometimes at different depositoriessame dayremoved
DepositoriesSettle each leg in its own settlement cycle; one may land before the otherhours to 1 to 2 daysremoved
Both banksCover the gap with cash collateral or credit lines while legs are unmatchedintraday or longerremoved
Operations teamsReconcile both legs and repeat the whole process to unwind at maturitydaysremoved
Tokenisedend to end: one simultaneous transfer at a pre-agreed time
Two banksAgree the basket swap and its start and end times on a trading platformminutes
Shared ledgerRecords the exchange of ownership of both baskets in one step, or not at allat the agreed time
Shared ledgerSwaps ownership back at maturityat the agreed time
Both baskets change hands together, so neither side gives up its securities without receiving the other set. The register's live example has run such swaps since 2019, including across two depositories.
EvidencedMeaningfulAvailable now
Over €1 billion notional of agency securities lending DvD outstanding on the HQLAX platform (2024)Operator-reported[2]
Needs counterparties on the ledgerNeeds cash on the ledgerNeeds smart contracts
HQLAX and Deutsche Börse collateral basket swaps (Eurex Repo): In the first live trades in December 2019, UBS swapped a basket of German government bonds for a basket of corporate bonds with Commerzbank, and later with Credit Suisse, as a single delivery-versus-delivery exchange of ownership recorded on the HQLAX registry. Neither basket had to be sent through a separate settlement system for the swap to complete.[1]
Ownership of collateral can move between banks whose securities sit at different custodians, such as Clearstream and Euroclear, without the securities physically moving.
EvidencedMeaningfulAvailable now
Needs counterparties on the ledgerNeeds connected ledgers
HQLAX and Deutsche Börse collateral basket swaps (Eurex Repo): One of the first live swaps, in December 2019, moved ownership of a basket of German government bonds held at Euroclear Bank to a counterparty whose collateral sat at Clearstream, without the securities themselves moving between the two depositories. Deutsche Börse's trusted third party linked the custodians to the registry. No timings or volumes were published.[1]
If shares, bonds and other assets are all tokenised on connected ledgers, any of them could in principle be swapped for another in one step. DTCC ran an equity DvD trade with tokenised DTC-held shares in its 2026 production tests.
1 tracked deployment, 1 live. 2 of 5 benefits evidenced in production.
Live (limited)1
The full potential
If more collateral and more types of security are tokenised on linked ledgers, firms could swap any eligible asset for another at a precise time, making collateral upgrades and securities lending cheaper and safer and letting pools of collateral at different custodians act as one. Today it is a niche service with few published volumes.
More custodians and tri-party agents connected to the ledger
More asset types tokenised, so baskets can mix bonds, shares and fund units
Legal certainty that ownership recorded on the ledger is final and enforceable
Links between platforms such as HQLAX, Kinexys and DTCC's service
Who it suits
Bank, Broker-dealer or market maker, Specialist digital asset custodian, Asset manager, Market infrastructure (FMI) · effort: medium · value depends on counterparties joining
Securities held at a custodian or tri-party agent linked to the ledger
Counterparties on the same platform
Legal agreements for securities lending or collateral swaps that recognise ledger records
Limits and open questions
Activity is thin and opaque. The live Eurex Repo service lists fees and tenors but publishes no volumes, and the first trades involved only a handful of banks.[6]
Benefits have not been measured independently; an industry analyst noted that no one had yet put numbers on them.[3]
Separate ledgers each keep their own record, so linking them does not easily stop collateral splitting across platforms.[4]
The model relies on a trusted third party that links custodians to the ledger, so the securities still sit in the existing system and depend on that link.[1]