American multinational investment bank JPMorgan said the financial institution had completed a repo transaction using a blockchain. On the 10th of December, JPMorgan announced that the bank used an in-house developed blockchain application to conduct the research. The announcement revealed that JPM used its blockchain business arm, Onyx. JPMorgan added that Onyx helped with quick settlement and maturity of transactions in hours instead of days.
The head of markets DLT at JPMorgan, Scott Lucas, said that the company is leveraging blockchain technology to reduce intraday risk profiles for customers. Lucas added:
“By deploying blockchain, we created new opportunities to streamline operational processes and accelerate settlement for repo. Our new solution will help unlock trapped pockets of liquidity for intraday use and allow for reduced risk profiles for our clients and J.P. Morgan.”
In addition, the bank also used JPMCoin for the cash leg during the transaction. Also, investment banking company Goldman Sachs and corporate investment banking company BNY Mellon participated in the repo transaction. Goldman Sachs’ global head of digital assets, Matthew McDermott, expressed his excitement with the project.
The CEO of BNY Mellon Clearance & Collateral Management, Brian Ruane, said the company is satisfied with its JPMorgan partnership. Ruane said further that the BNY Mellon would support the project with its expertise to provide much-needed collateral services to market participants looking to execute intraday repo transactions.”
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