Post by Abaxx Technologies

Abaxx Advances Digital Title Toward Commercial Implementation; Names Alta as First Singapore Integration Partner This morning, we announced a commercial engagement with Alta, to advance the use of money market fund shares as T+0 collateral for margin at Abaxx Clearing, moving Digital Title toward its first commercial implementation. Last year, we demonstrated that Digital Title can provide a legally enforceable and operational mechanism to 𝒊𝒏𝒔𝒕𝒂𝒏𝒕𝒍𝒚 mobilize money market fund shares as collateral for margin and financing. In the December pilot, evidence of legal title transferred immediately on margin call, giving the receiving party direct ownership of the underlying money market fund shares, rather than a pledged claim exposing them to an insolvency gap, while the original holder continued to earn yield on the same principal throughout the transaction. Following the successful pilot, we are moving from pilot transactions to commercial partnerships, engaging with Alta to advance the use of money market fund shares as T+0 collateral for margin at Abaxx Clearing. Abaxx and Alta have signed a letter of engagement to partner in the establishment of a Singapore-based Variable Capital Company (or, VCC) umbrella structure, including a sub-fund designed to invest in USD-denominated money market instruments and short-term fixed income securities, to support the use of those fund shares as T+0 collateral within Abaxx Clearing, while allowing yield on those assets to continue to accrue. The VCC will be a Singapore-regulated open-ended fund vehicle designed for institutional use, providing the legal structure for those fund shares to be recognized as collateral within Abaxx Clearing, subject to regulatory approval. Alta is a Singapore-licensed fund management company, and will serve as fund manager for the VCC structure. Kelvin Lee, Alta Group CEO stated: 🗯️ "The Abaxx Alta MMF is built for clearing participants: members holding margin at Abaxx shouldn't have to choose between liquidity and yield, and by structuring the sub-fund's units to function as T+0 collateral, we give them both." "This works alongside Abaxx's Digital Title technology, with real-time visibility into the sub-fund's holdings across all parties providing the transparency required for the units to function as live collateral, something difficult to achieve under traditional settlement timelines. We're proud to be Abaxx's first integration partner, and optimistic about what this infrastructure can unlock for institutional markets.” Read full release ➡️ https://lnkd.in/epGmWqMd ------ Alta (formerly Fundnel)