What is Tri-Party Repo?

Question

Accepted Answer

A **Tri-Party Repo** (Repurchase Agreement) is a financial transaction where a third-party intermediary, known as the Tri-Party Agent (TPA), facilitates the collateral management process between the cash borrower and the cash lender, handling selection, custody, and settlement of the underlying securities, which are often high-quality assets like U.S. Treasury securities.

Tri-Party Repo

What is Tri-Party Repo?

What is a Tri-Party Repo, and how does the Tri-Party Agent mitigate counterparty risk in the multi-trillion-dollar repurchase agreement market?

How does the collateral management process work in a Tri-Party Repo, and what specific types of high-quality assets are typically used as security?

Why is the Tri-Party Repo market a critical component of the global financial system, and what is its historical volume and rate structure?

How is the traditional Tri-Party Repo mechanism being adapted to facilitate the tokenization of Real-World Assets (RWA) and on-chain settlement for institutional investors?

Learn More