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

Sign in

India's largest platform for AI & Analytics leaders & professionals
Become a Thought Leader
Become a 3AI Member

Sign in

3AI Digital Library

< Go Back

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

  • Cybersecurity Challenges: Fourth Greatest Danger to Global Economy

    The 2021 World Economic Forum (WEF) Global Risk Report, used for over a decade by organizations around the world as a risk assessment tool, has named “cybersecurity challenges” as the fourth most pressing danger to the global economy. The ranking is determined by responses to a survey conducted among various stakeholders and organizations affiliated with […]

  • ChatGPT and Large Language Models: A prioritization Framework for Leaders

    Featured Article: Author: Robin John, Artificial Intelligence Strategist, APAC, Kimberly-Clark Ever since ChatGPT was released last year, a flurry of LLM(Large Language Model) – related product announcements from tech giants have taken the world by storm. The key driving factor behind the success of ChatGPT is its human-like interface into AI. A technique called Reinforcement […]

  • RBI provides new set of guidelines for the Digital Banking and Payments ecosystem

    The master direction on digital payment security controls, released last week, casts a wide net. The skyrocketing of online transactions in the country—Covid-19 has provided no small impetus, with the amount transacted via UPI doubling in January 2021, at Rs 4.3 lakh crore, from lasts year’s Rs 2.1 lakh crore—calls for fortifying cybersecurity in the […]

  • Infosys shifting from IT services to hyper automation and analytics

    Infosys is preparing for the AI revolution, a shift from IT services to hyper automation and analytics IT major Infosys has been making progress in exponential technologies such as Artificial Intelligence (AI), a significant shift from the usual IT services. This has been further accelerated by the lockdown and subsequent need to adopt AI and cloud based […]