India's largest platform and marketplace for AI & Analytics leaders & professionals

Sign in

India's largest platform and marketplace for AI & Analytics leaders & professionals

3AI Digital Library

JPMorgan Completes Live Intraday Repo Transaction using Blockchain

3AI December 15, 2020

IBM-Launches-New-Blockchain-Project-Collaborating-with-Big-Firms

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 coins 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.”

    3AI Trending Articles

  • Blockchain Powered Smartphones by Fesschain

    Firm has tied up with a private manufacturer that can produce 10,000 pieces a day. But Fesschain is now scouting for a suitable location in Noida to set up its own production unit Homegrown blockchain technology company Fesschain is targetting almost 10 shipments of its smartphones in the next 6-12 months. The company, which has recently entered mobile handset […]

  • Cybersecurity To Remain Hot In The New Year

    Despite a pandemic that raged around the globe for the better part of the year, the cybersecurity market retained investor interest in 2020 and many in the sector expect next year to be no different. “Security is a red hot sector with more and more money pouring into it,” said Andrew Atherton, managing director at Union Square […]

  • The virtuous cycle of Digital Transformation, Improved CX and AI/ Analytics

    Featured Article: Author: Mahadevann Iyerr, Co-founder & CEO, MAAVRUS Today customers are inundated with a plethora of choices and so it is very easy for them to shop around across multiple products &  retailers. Also given the level of increasing clutter around communication and the proliferation of new products and service offerings, new customer acquisition […]

  • Chess and AI

    “It’s just a machine. It has no consciousness or feelings as we understand them. We have specific connections in our brain that make us react according to the circumstances, the situations we are experiencing. We interpret them as pleasure, pain and all other kinds of emotions. We would have to invent a new word to […]