Digital Asset Services Unveiled by Broadridge
In a move to cater to both traditional finance (TradFi) firms and new players in the crypto and digital assets space, Broadridge, a leading global Fintech company, has launched its Digital Assets Solutions last year.
Mike Tae, Co-President of Broadridge's Investor Communication Solutions Business, announced that the new service aims to help clients provide valuable information to investors and participants in the digital assets realm. The solutions enable investors to better access, understand, and monitor digital assets across various intermediaries and exchanges offering these products.
Broadridge's Digital Assets Solutions also aims to assist institutions with disclosure and compliance requirements, a crucial aspect given the regulatory landscape surrounding digital assets. Although cryptos are not considered securities in the U.S., it is likely that some form of disclosure to investors will be required. In fact, Congress in the United States is developing a market infrastructure bill, which may require disclosures for certain cryptos.
To facilitate this, Broadridge offers its ClearFi product, enabling institutions to provide disclosure data to investors about cryptocurrencies and tokenized assets. Moreover, Broadridge's DLR solution, a blockchain-enabled platform designed to modernize repo markets, can also play a role in this regard.
The DLR platform, which has transaction volumes reaching $1.5 trillion monthly, addresses liquidity management and operational efficiency challenges by leveraging blockchain for secure, transparent, and faster settlement processes. It bridges the gap between current financial market infrastructure and blockchain technology, enabling banks to move money between group subsidiaries more efficiently while integrating traditional capital markets with emerging digital asset capabilities.
However, while initiatives like Broadridge's DLR provide operational efficiency improvements and demonstrate the practical application of blockchain in financial markets, adoption and scale at large remain limited. Industry analysts note that while DLR advances the infrastructure of tokenization and digital assets, traditional institutional adoption and broad market scale are still developing, with regulatory, legal, and investor skepticism factors playing significant roles.
In Europe, MiCAR already has requirements for disclosures in digital asset markets. As the U.S. continues to work on crypto clarity, the details are still in progress. Nevertheless, the Trump era has seen an increase in crypto friendliness, prompting Broadridge to expand into digital assets.
In summary, Broadridge's Digital Assets Solutions and DLR platform are pioneering efforts in the tokenization and digital asset space, offering enhanced liquidity and efficiency but still facing broader industry adoption challenges characteristic of the emerging digital asset ecosystem.
