HQLAx announced it has received strategic minority investments from Broadridge Financial Solutions (NYSE: BR) and Digital Asset in its Series C-1 funding round. The Luxembourg-based company provides digital collateral mobility solutions for the securities finance industry.

The investment will support HQLAx's platform development, collaboration with Broadridge's Distributed Ledger Repo platform, and a planned migration to the Canton Network. The company stated these initiatives aim to support regulated market use cases across the global securities finance and repo industry.

"This strategic investment marks a key milestone for HQLAx as we continue to build critical market infrastructure for collateral mobility," said Guido Stroemer, CEO of HQLAx.

Horacio Barakat, Global Head of Digital Innovation at Broadridge, said the company sees opportunity in combining HQLAx's innovation with Broadridge's market infrastructure expertise and distributed ledger solutions.

Kelly Mathieson, Chief Business Development Officer at Digital Asset, noted that HQLAx has demonstrated how to deliver collateral mobility solutions that meet regulated institutions' needs.

As part of the transaction, representatives from both Broadridge and Digital Asset will join the HQLAx board. The board appointments and Canton Network migration require regulatory approval from Luxembourg's financial regulator, the Commission de Surveillance du Secteur Financier.

HQLAx uses distributed ledger technology to provide collateral mobility services to banks and asset managers. Broadridge's Distributed Ledger Repo solution processes approximately $354 billion daily in tokenized assets.