EquiLend, a US-based securities lending platform, has secured a minority investment from an affiliate of Bank of New York Mellon (BNY Mellon).
The financial technology firm, which provides trading, post-trade, data and analytics, regulatory technology, and platform solutions, operates across multiple jurisdictions. It has established a presence in North America, Europe, the Middle East, and Asia-Pacific, delivering services to market participants in securities lending and financing.
BNY Mellon’s investment adds to the group of eight financial institutions that hold strategic stakes in EquiLend. These institutions contribute to the company’s development efforts aimed at enhancing efficiencies in securities finance infrastructure.
As part of this collaboration, BNY Mellon will participate in advising EquiLend on future innovations in market technology.
BNY Mellon will also be among the initial users of EquiLend’s 1Source platform, a distributed ledger technology (DLT)-based solution designed to create a single source of truth for securities finance transactions.
The 1Source platform, developed with input from industry participants, is intended to improve transparency and reduce inefficiencies in trade processing by using smart contracts.
BNY Mellon securities finance head Nehal Udeshi said: “This investment reflects our confidence in EquiLend’s ability to tackle the industry’s biggest challenges with innovative solutions that drive greater efficiency. We are confident in EquiLend’s central role in the marketplace and plans to further redefine securities finance with innovative market infrastructure.”
BNY Mellon’s investment follows the acquisition of a majority stake in EquiLend by private equity firm Welsh, Carson, Anderson & Stowe (WCAS) in September 2024. In addition to acquiring control, WCAS committed $200m to fund EquiLend’s growth initiatives, including organic expansion and potential acquisitions.
EquiLend was founded in 2001 by a consortium of global banks and broker-dealers to develop technology solutions for securities finance operations. The company has expanded its platform over the years, supporting market participants with transaction management and data services.
EquiLend CEO Rich Grossi said: “BNY has been a strong partner of EquiLend’s since shortly after the company’s founding over 20 years ago. This investment brings added advisory leaders and underscores the commitment to our products and transformative potential of our long-term strategy.
“We continue to be focused on solving our industry’s needs, and this collaboration brings us even closer to driving forward our vision for a more efficient, transparent and modern securities finance industry.”
