Blockchain system expands to G7 securities as banks adopt intraday lending
Broadridge’s distributed-ledger repo platform processed an average of $359 billion per day in September 2026, according to company data, as the financial technology firm expanded its tokenized securities system to cover government bonds across G7 markets.
The platform coordinates short-term loans known as repurchase agreements, where banks temporarily exchange securities for cash and reverse the transaction at a higher price reflecting the borrowing cost. Broadridge’s system uses digital tokens to represent securities held in custody and deploys smart contracts to synchronize collateral transfers with cash payments through conventional banking channels.
September’s daily volume represents a $7.5 trillion monthly total. The figure marks a 1.6% decline from January 2026, when Broadridge reported a $365 billion daily average, though the company expanded eligible collateral to G7 securities during the interim period. Broadridge also reported $362 billion daily volumes in February and May 2026.
The repo market underpins short-term bank funding. The Office of Financial Research estimated $8 trillion in Treasury-backed repo outstanding as of August 2025. The New York Fed reported $3 trillion in daily transactions underlying the SOFR overnight funding benchmark.
Intraday lending reduces interest costs
Broadridge’s platform enables intraday repo, allowing banks to borrow against securities for hours rather than overnight. This capability reduces interest expense for institutions that own valuable collateral but need temporary cash.
On a $1 billion overnight repo at 5% annualized rate, one day’s interest totals $138,889. The same amount borrowed for two hours costs $11,574, a theoretical savings of $127,315 if the bank can reverse the intraday loan instead of holding it overnight.
Société Générale, which uses Broadridge’s system, reported eliminating spreadsheet-based settlement work and reducing daylight-overdraft charges to zero on four of five trading days. The bank estimated annual operating cost savings of $1 million from using the platform.
Liquidity buffer modeling
Finadium, a financial consultancy, modeled the liquidity benefits of intraday repo on Broadridge’s platform. If a bank deployed the system for 15% of its intraday funding needs, the model estimated the bank could reduce its liquidity buffer by 8% to 17%, freeing up capital for other uses.
Under the Broadridge-Finadium model, a bank maintaining a $1 billion liquidity buffer could have $80 million to $170 million in additional available cash by reducing buffer requirements through intraday repo access.
Haircut mechanics and cash advance calculations
Repo lenders advance less cash than securities are worth, a discount called a haircut, to protect against borrower default or bond price declines. On $1 billion in bonds, a 2% haircut yields a $980 million cash advance, while a 5% haircut yields $950 million, a $30 million difference.
Interest costs on these amounts diverge accordingly. At 4% annualized rate, one day’s interest on $980 million totals $108,889. At 5% annualized rate, one day’s interest on $950 million totals $131,944.
Michael Walsh of Société Générale described the cost savings in Broadridge’s white paper on the platform’s efficiency gains.
