India's largest platform and marketplace for GCCs & AI

Sign in

India's largest platform and marketplace for GCCs & AI
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

  • European Union to revamp Cybersecurity rules

    EU last year recorded around 450 cyber incidents involving European infrastructure, notably in the financial and energy sectors, and the pandemic has highlighted Europe’s deep dependence on the internet and exposed security weaknesses.  The European Union unveiled Wednesday plans to revamp the 27-nation bloc’s dated cybersecurity rules, just days after data on a new coronavirus vaccine was unlawfully accessed in […]

  • Driving AI Adoption: An 8-Step Blueprint for Your Team’s Success

    Featured Article: Author: Ganes Kesari, Innovation Titan A Telecom major was grappling with high customer attrition. The firm was one of the largest Telecom companies in the world and a market leader in Asia. The marketing team’s heuristics-driven approach to customer retention was dated and ineffective. Reviewing the business performance in a weekly huddle, the […]

  • 2020 marked a “turning point” for Cybersecurity in Australia

    Australians are on high alert about the threat of cyber attacks following Prime Minister Scott Morrison’s warning in June that Australia was targeted by a sophisticated “state-based” cyber-attack. It was, according to the Australian Cyber Security Centre (ACSC), the most significant and coordinated cyber-targeting against Australian institutions to date. The Prime Minister said while such […]

  • What is Demand Forecasting and how it helps a Business?

    Featured Article: Author: Soutrik Chowdhury & Sreedhar Sambamoorti, AB InBev Demand forecasting is the estimation of a probable future demand for a product or services based on historical trends, seasonal patterns and taking both internal and external factors into consideration  Demand forecasting is crucial for activities such as supply planning, product manufacturing planning, and financial […]