JPMorgan is using DLT for repo.

From reports last week: “JPMorgan has announced a successful blockchain-based repo transaction – with the potential to reduce such payments to hours rather than days.

The intraday repo transaction was settled on both ends through blockchain technology. The cash leg used JPM Coin, a digital coin designed for instantaneous payments, to facilitate the transaction.

“The repo market provides a widely used form of secured financing, however current operational limitations prevent the meaningful use of such financing to meet intraday liquidity needs. Using blockchain enables borrowers & lenders to execute shorter-term, intraday repo transactions with real-time, simultaneous transaction settlement, creating new ways to access intraday liquidity.”

The financial services giant simulated trades with Goldman Sachs to prepare the test run, with BNY Mellon as the custodian.

“The current repo market has some technical inefficiencies, and we identified blockchain technology as a way to reduce our clients’ intraday risk profile,” said Scott Lucas, JP Morgan head of markets DLT.”

At Inveniam, we see counter party risk as an issue creating vast inefficiencies in private markets. Inveniam is solving these problems. #Inveniam

Read the full post on LinkedIn 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.