JP Morgan has formed a partnership to utilize its JPM Coin digital token as a settlement mechanism on Broadridge’s Distributed Ledger Repo (DLR) platform.
The DLR platform leverages distributed ledger technology to provide Broadridge clients with intra-day, overnight, and term repo capabilities. This collaboration marks the inaugural use of JPM Coin—developed by JP Morgan’s blockchain unit, Onyx—as a settlement solution for an external digital platform, with availability projected by June.
JP Morgan points out that the current lack of “cash-on-chain” solutions in the industry positions JPM Coin as a potential framework for various cash settlement solutions on digital platforms. The solution entails synchronized settlement between the two blockchain networks, enabling delivery versus payment cross-chain by “locking” cash and releasing it simultaneously with asset transfers.
Nelli Zaltsman, head of platform settlement solutions at Onyx by JP Morgan, expressed enthusiasm, stating, “We are delighted to launch our Synchronized Settlement solution using JPM Coin through our work with Broadridge. At Onyx, we aspire to be the leading provider of Cash-on-Chain solutions to existing and increasingly expanding digital asset platforms globally.”