French banking large BNP Paribas (EPA) has joined JPMorgan’s (JPM) blockchain-based community for fastened earnings market buying and selling, based on a report by the Monetary Occasions.
The Onyx Digital Belongings community makes use of tokens for short-term buying and selling in fastened earnings markets, enabling buyers to lend out property for as little as a number of hours with out them really leaving their stability sheets.
Three quarters of offers on the repurchase – or “repo” – market are backed by authorities bonds, which means it is likely one of the most vital sources of collateral for banks to fund their stability sheets.
Goldman Sachs (GS) has additionally beforehand tapped JPMorgan’s community for repo buying and selling.
Some $300 billion of intraday repo offers have been performed on the Onyx community since its launch in 2020.
JPMorgan and BNP Paribas weren’t obtainable for remark at press time.
“We see this as a part of our efforts to utilise the know-how for the entire buying and selling and operations lifecycle because the market evolves,” Joe Bonnaud, world markets chief working officer for BNP Paribas stated, within the report revealed on Monday.
Learn extra: EU Set to Experiment With Blockchain-Primarily based Inventory, Bond and Fund Buying and selling
