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EquiLend says Goldman Sachs has joined 1Source, its distributed-ledger platform for securities finance. It is the platform’s third participating institution, after Bank of New York and National Bank of Canada; the expected efficiency and cost benefits are platform goals, not reported results.
Goldman Sachs has joined 1Source, a distributed-ledger technology (DLT) platform for securities finance operated by EquiLend, the company announced. Goldman is the platform’s third participating institution, joining Bank of New York and National Bank of Canada in a development that adds a major securities borrower to the service.
EquiLend said 1Source uses blockchain technology and is designed to improve the processing of securities finance activity. The company’s stated aims include increasing efficiency, reducing operational breaks and eliminating reconciliations, as well as improving costs and settlement rates. Those are platform objectives; the announcement does not provide measured results or figures showing benefits already achieved.
EquiLend CEO Rich Grossi welcomed Goldman Sachs, describing the firm as one of the industry’s largest borrowers. He said its participation could add benefits for other platform users by reducing costs and improving operational efficiency across the participant community. The report did not disclose financial terms, the scope of Goldman’s use, or a timetable for its activity on 1Source.
With Goldman Sachs, the platform now has three named institutional participants: Bank of New York, National Bank of Canada and Goldman Sachs. The announcement establishes Goldman’s participation, but does not specify whether the firms are using the same services, how much business is expected to move onto the platform, or whether additional participants are committed.
Goldman Adds Scale to 1Source
Goldman Sachs’ participation matters because securities lending depends on coordination among financial institutions that borrow and lend securities and manage the related processing. Adding a major borrower may give 1Source access to a broader set of activity and could make the platform more useful to other participants. That is the rationale presented by EquiLend, not evidence that adoption or efficiency gains have already followed.
The announcement also puts a concrete institutional name behind the platform’s expansion: 1Source has moved from two named participants to three. For market users, the practical test will be whether participation translates into routine transactions and measurable reductions in reconciliation work, processing breaks, costs or settlement problems. The source provides no performance data, so the scale of any operational impact remains unknown.
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A Securities Finance Market in Flux
The announcement comes amid changes in the securities lending sector. Finextra reported that eSecLending was acquired by Capitolis at the end of September, and that EquiLend was acquired by private equity firm WCAS in September 2024. The source does not give a year for the eSecLending transaction, so its timing cannot be pinned down further here.
Those transactions offer industry context, but the report does not say they prompted Goldman’s decision or that the acquisitions are connected to 1Source. The confirmed development is narrower: EquiLend announced a new participant for its DLT-based platform, which now has three named institutions.
““We are excited to welcome Goldman Sachs, one of the industry’s largest borrowers, onto the 1Source platform.””
— EquiLend CEO Rich Grossi
Adoption and Results Remain Unreported
The announcement does not say when Goldman Sachs will begin using 1Source, what transaction volumes it may process, or which securities finance workflows will be included. It also provides no information on implementation arrangements, commercial terms or plans for further participants.
EquiLend’s efficiency, cost and settlement aims have not been accompanied by independent or platform performance figures in the source report. It remains unclear whether the platform has already reduced reconciliation needs or processing breaks for existing participants, and what baseline or measurement period would be used to assess any change.
Platform Use Will Test the Claims
The next meaningful development will be evidence of how Goldman Sachs participates in 1Source: whether it begins processing activity on the platform, what scope that activity covers and whether EquiLend reports further institutions joining. Any reported volumes or operational results would help clarify how much the new participation changes the platform’s reach.
For now, EquiLend has announced Goldman Sachs as a participant, but has not supplied a launch schedule or quantified impact. Further details from the company or participating institutions would be needed to establish whether the platform’s stated efficiency and cost goals are being achieved.
Key Questions
What did Goldman Sachs announce?
EquiLend announced that Goldman Sachs has joined 1Source, its DLT-based securities finance platform. The source report does not provide further detail on Goldman’s planned use.
What is 1Source?
1Source is an EquiLend securities finance platform that uses distributed-ledger technology. EquiLend says it is designed to improve efficiency and reduce operational breaks and reconciliations.
How many institutions are named as participants?
The report names three institutions: Goldman Sachs, Bank of New York and National Bank of Canada.
Have cost or settlement improvements been confirmed?
No measured improvements were reported. Cost reduction, efficiency and better settlement rates are described as platform goals, not documented outcomes in the announcement.
When will Goldman begin using the platform?
The report does not give a start date, transaction scope or expected volume for Goldman’s use of 1Source.
Source: finextra.com
