JPMorgan (JPM) has expanded the usage of its blockchain-based settlement token, JPM Coin, to include one of Broadridge’s repo platforms, the latest step in Wall Street’s evolving approach to crypto space.
The bank’s blockchain arm, Onyx, has partnered with fintech company Broadridge to integrate its web3 payment system. Onyx’s JPM Coin will serve as the settlement mechanism for Broadridge’s Distributed Ledger Repo platform, which provides intra-day, overnight, and term repo services using blockchain technology.
Broadridge users can expect the JPM Coin settlement functionality to be available by next month. This initiative marks the first time JPM Coin will be used for settlement on a third-party digital platform.
Repurchasing agreements, or repos, involve one entity selling a security to another with the agreement to repurchase it later, typically at a higher price. The integration of JPM Coin is said to upgrade the efficiency and security of these transactions through blockchain technology.
“We are delighted to launch our synchronized settlement solution using JPM Coin through our work with Broadridge,” said Nelli Zaltsman, Head of Platform Settlement Solutions at Onyx. “At Onyx, we aim to be the foremost provider of cash-on-chain solutions to existing and growing digital asset platforms globally.”
JPM Coin serves as a payment rail and deposit account ledger, enabling participating entities to transfer fiat money held in deposit with the largest bank in the United States. Since its launch in 2019, the token has facilitated over $350 billion in transactions, establishing itself as one of the most prominent applications of blockchain technology by a traditional financial institution. That compares to JPMorgan’s daily transaction volume of nearly $10 trillion through conventional means.
JP Morgan Chase revealed last year that more clients had already begun using its own cryptocurrency to instantly send and settle payments around the world. However, the coin is available only for international payments for large corporate clients, that have undergone regulatory checks.
The New York-based lender started trials of its JPM Coin in conjunction with corporate clients with the ultimate aim of speeding up transactions, such as cross-border payments and corporate debt issuance.
