In this use case video, we will explain how Tokenovate implements atomic settlement for intra-day repo transactions in the Bank of England Synchronisation Lab.
In the Synchronisation Lab we are demonstrating how our platform can synchronise DvP settlement for intra-day repo transactions by linking central bank money settlement with the transfer of securities, represented either as tokenised assets or traditionally modelled securities.
The end-to-end use case starts with our platform receiving a trade execution message containing the economic terms of the intra-day repo, calculates the cash obligations and generates a payment instruction for settlement in the Lab. The trade execution message is converted using the CDM which provides a standardised, machine-readable representation of the transaction.
At the same time, the securities leg is processed through either a tokenised bond transferred on a distributed ledger test network or a mock digital securities depository, or a traditionally represented bond transferred within a simulated CSD environment.
Our platform synchronisation logic then coordinates both legs and ensures atomic execution, so neither cash nor securities can settle independently. Settlement completes only when both transfers are confirmed, after which the trade state is updated to reflect simultaneous completion.
Our use case in the Synchronisation Lab addresses several real world gaps. For example, current repo settlement relies on separate infrastructures for cash and securities transfer, creating timing differences and operational risk.
For more information, visit https://www.bankofengland.co.uk/payments/rtgs-future-roadmap/synchro-lab