JPMorgan Completes Live Blockchain Repo Trade Ahead of New Product Launch
The live repo trade used a blockchain application built in-house, as well as the bank's jpm coin.
Dec 10, 2020 at 2:42 p.m. UTCUpdated May 9, 2023 at 3:14 a.m. UTC
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/5QBV6OLIT5HR7N2KFCZ3SQYCZU.jpg)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
Investment bank JPMorgan says it has completed a live intraday repo transaction using a blockchain solution that will soon see a commercial launch.
- The repo trade was carried out between JPMorgan’s broker-dealer and banking entity, the bank announced Thursday.
- The blockchain application used was developed in-house by the bank's blockchain business arm, Onyx, and is said to support the settlement and maturity of such transactions in hours rather than days.
- The trade also used the bank's stablecoin jpm coin for the cash leg. Blockchain was used for both collateral and cash legs.
- For context, the repo market allows financial firms such as JPMorgan to trade large quantities of securities and to borrow cheaply – allowing parties with cash to earn a small return.
- Repo trades are like a short-term loan, involving a trader selling an asset to another trader at a set price and committing to repurchase the same asset, or part of the asset, at a different price at a future date.
- The blockchain app will see production use, being offered to external counterparties in the U.S., according to the announcement.
- Goldman Sachs and BNY Mellon have both been involved in trial trades on the platform and will be involved going forward.
- Mathew McDermott, global head of digital assets at Goldman Sachs, said his institution is "looking forward to going live in early 2021."
- Brian Ruane, CEO of BNY Mellon Clearance & Collateral Management, said his bank would be a "critical partner for JPMorgan to provide much-needed collateral services to market participants looking to execute intraday repo transactions."
20:07
Why Worldcoin Is Launching a Layer 2
02:17
Polymarket Traders Bet on Fed Rate Cuts; Bitcoin Spot ETFs Register Five-Day Withdrawals Streak
00:50
Base Monthly Active Addresses Increased by 160% in March: Nansen
04:16
Bitcoin Halving: We Answer Your Questions
:format(webp)/downloads.coindesk.com/arc/failsafe/user/1x1.png)