Onyx, J.P. Morgan’s blockchain business unit, and Broadridge, have collaborated to offer JPM Coin as a settlement mechanism for the Distributed Ledger Repo (DLR) platform.
JPM Coin aims to complement Broadridge’s DLR repo capabilities, which offer intraday repo, as well as the current overnight and term repo functionalities.
This move marks the first instance of JPM Coin providing settlement capabilities to an external digital platform, the firms say.
The entities add that the offering “could act as a framework” for other cash settlement solutions for other digital platforms going forward, given the “lack of” cash-on-chain solutions currently available.
The solution involves synchronised settlement across the two blockchain networks achieving delivery versus payment (DVP) cross-chain, on the basis of “locking” cash and releasing it synchronously with the asset transfers.
J.P. Morgan and Broadridge anticipate that JPM Coin will be available to Broadridge users as a settlement solution by June 2024.
Commenting on the milestone, Nelli Zaltsman, head of platform settlement solutions at Onyx by J.P. Morgan, says: “We are delighted to launch our Synchronized Settlement solution using JPM Coin through our work with Broadridge. At Onyx, we look to be the foremost provider of cash-on-chain solutions to existing and steadily growing digital asset platforms globally. ”
Horacio Barakat, head of digital innovation at Broadridge, comments: “DLR continues to drive the transformation of global repo market infrastructure, and this collaboration with JPM Coin represents another step in the digitisation of repo markets.
“This next innovation will power DLR as the ubiquitous intraday platform, leveraging existing market infrastructure in addition to new digital cash solutions.”
