DBS becomes first bank in Asia to complete an intraday repurchase via blockchain network
23 November 2022 Asia
Image: fotomek
DBS has become the first bank in Asia to complete an intraday repurchase (repo) transaction on J.P. Morgan’s intraday repurchase application via Onyx Digital Assets (Onyx).
Onyx is a blockchain based network which supports instant settlements and maturity of the transactions within hours, instead of the current industry norm of one to two working days.
The news comes a month after DBS Bank joined LCH SwapClear as the clearing service’s first direct member in Singapore.
Commenting on the recent transaction, Andrew Ng, head of treasury and markets at DBS, says “Repurchase agreements or repos are a traditional and well-established method of raising financing, but infrastructural and technical inefficiencies mean the minimum term has usually been one day.
“In the past, banks around the world had to explore alternative routes for intraday financing requirements. Through leveraging efficiencies of a blockchain-based solution, we are able to raise USD funding in compressed time frames which are beneficial to our liquidity needs.”
Ed Bond, head of trading services APAC at J.P. Morgan, comments: “This is the first time that J.P. Morgan is acting as both tri-party agent and collateral token agent, which is an exciting development for the market. DBS has been a great partner on this project and we will continue looking at ways to innovate and help our clients navigate market challenges.”
Onyx is a blockchain based network which supports instant settlements and maturity of the transactions within hours, instead of the current industry norm of one to two working days.
The news comes a month after DBS Bank joined LCH SwapClear as the clearing service’s first direct member in Singapore.
Commenting on the recent transaction, Andrew Ng, head of treasury and markets at DBS, says “Repurchase agreements or repos are a traditional and well-established method of raising financing, but infrastructural and technical inefficiencies mean the minimum term has usually been one day.
“In the past, banks around the world had to explore alternative routes for intraday financing requirements. Through leveraging efficiencies of a blockchain-based solution, we are able to raise USD funding in compressed time frames which are beneficial to our liquidity needs.”
Ed Bond, head of trading services APAC at J.P. Morgan, comments: “This is the first time that J.P. Morgan is acting as both tri-party agent and collateral token agent, which is an exciting development for the market. DBS has been a great partner on this project and we will continue looking at ways to innovate and help our clients navigate market challenges.”
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