DBS has become the first bank in Asia to execute an intraday repo transaction on JPMorgan’s blockchain network, Onyx, leveraging the US bank’s JPM Coin digital token for instant settlements. This process allows transactions to reach maturity within hours, significantly shorter than the typical industry timeframe of one to two working days.
Repurchase agreements, or repos, are a well-established financing method, yet traditional infrastructural and technical inefficiencies have typically required a minimum term of one day. Previously, banks often needed to seek alternative strategies for their intraday financing needs.
In the recent transaction on Onyx, JPMorgan served as both the triparty agent and collateral token agent.
Andrew Ng, head of treasury and markets at DBS, stated, “By utilizing the efficiencies of a blockchain-based solution, we can secure USD funding in compressed timeframes, which is advantageous for our liquidity requirements.”
Scott Lucas, head of markets distributed ledger technology at JPMorgan, remarked, “Our intraday repo solution enables clients to enhance operational efficiencies and accelerate settlement times for their repo activities. We are thrilled to have our first Asia-domiciled client live on the application as the network continues to expand.”