J.P. Morgan Executes Intraday Repo Transaction Using Blockchain
NEW YORK--(Business Wire)--J.P. Morgan (NYSE: JPM) announced today it completed a live, blockchain-based intraday repo transaction. The transaction was successfully conducted between J.P. Morgan’s broker dealer and banking entity, using an in-house developed blockchain application which supported instantaneous settlement and maturity of the transaction in hours, as opposed to days.
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 and lenders to execute shorter-term, intraday repo transactions with real-time, simultaneous transaction settlement, creating new ways to access intraday liquidity. Both collateral and cash legs of the repo transaction were settled using blockchain, with the cash leg leveraging JPM Coin.