JPMorgan has completed a live, blockchain-based intraday repo transaction using an in-house developed application which supported instantaneous settlement and maturity of the transaction in hours, as opposed to days.
The offering will now be made available in production to external counterparties in the US – some of which have already simulated transactions on the new application.
JPMorgan recently unveiled Onyx, a new business unit to scale and commercialize blockchain innovation, with JPM Coin as a key offering from the suite of products, platform, and services.
The transaction, which was successfully conducted between JPMorgan’s broker dealer and banking entity, provides a means to overcome traditional operational limitations to securing access to intraday liquidity in the repo market.
[global head of digital assets at Goldman Sachs:] “This is an exciting project which vividly highlights where enterprise blockchain can address a real-world problem in the financial system and we look forward to going live in early 2021.”