(11 December 2020 – United States) JPMorgan have recently deployed blockchain technology to conduct live intraday repurchase agreement (Repo) transactions, supported by real-time settlement and maturity.
Traditionally, the repo market is used to finance short term liquidity needs, however, the current operational constraints has prevented it from supporting intra-day liquidity needs. With the use of blockchain, borrowers and lenders can now execute short term repo transactions in real time through JPMorgan’s platform.
“The current repo market has some technical inefficiencies, and we identified blockchain technology as a way to reduce our clients’ intraday risk profile” commented JP Morgan Head of Markets Distributed Ledger, Scott Lucas
“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 JPMorgan” he also added.