ICMA Repo and DLT report key takeaways
- Tokenization Insight
- 10 hours ago
- 2 min read
ICMA Repo and DLT report key takeaways.
1️⃣ While DLT has the potential to transform repo infrastructure through faster settlement, automation, improved collateral mobility, and reduced operational friction, actual adoption remains limited.
By the end of 2025, only two platforms had achieved meaningful commercial scale.
- JPMorgan Kinexys
$2bn daily repo turnover reported in 2025
$3tn cumulative turnover by May 2026
- Broadridge DLR
Significant growth during 2025
Driven largely by Sponsored Repo activity in the US market.
2️⃣ Intra-day repo is emerging as the strongest near-term use case
Most DLT repo activity has focused on intra-day transactions.
Benefits include:
- Lower liquidity buffers
- Reduced funding costs
- Precise timing of borrowing and repayment
- Near-instant settlement
3️⃣ Cross-chain interoperability is becoming the central challenge
The most common DLT repo model tested was digital collateral on one ledger + digital cash on another ledger
41% of tests were cross-chain.
This suggests the industry is moving toward interconnected networks rather than one dominant ledger.
4️⃣ Tokenized deposits are winning over stablecoins for institutional repo
The most common digital cash used in repo experiments was tokenized commercial bank deposits (41%)
This aligns with what many banks are pursuing today:
- JPMorgan Kinexys
- Citi Token Services
- HSBC deposit token initiatives
5️⃣ US Treasuries dominate tokenized collateral
Collateral in DLT repo tests was overwhelmingly:
- US Treasuries
- Government securities
- Traditional high-quality collateral
US Treasuries appeared in at least 13 documented transactions and tests.
This reinforces why tokenized Treasuries and MMFs increasingly resemble future repo collateral rather than simply investment products.
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