Goldman Sachs reportedly started trading on JPMorgan Chase’s buyback blockchain

After paying attention to JPMorgan Chase’s customized blockchain services for the repurchase market for six months, Goldman Sachs has begun trading on the platform.

Matthew McDermott, Global Head of Digital Assets, Goldman Sachs Global Markets, confirmed the first transaction on June 17 in an interview with Bloomberg Report.

In the transaction, Goldman Sachs replaced the tokenized version of U.S. Treasury bonds with JPM Coin, a stable currency pegged to the U.S. dollar by JPMorgan Chase. JPMorgan Chase launched its private blockchain service last year to improve the efficiency of repurchase agreements. The platform uses JPM Coin to exchange digitized U.S. Treasury bonds.

Goldman Sachs is one of the earliest financial institutions Pay attention to the platformLast year, McDermott mentioned the efficiency of JPMorgan Chase’s blockchain-based repurchase market service, saying that “enterprise blockchain can solve a practical problem in the financial system.”

As a trillion-dollar market, repurchase or “repurchase” agreements are short-term borrowing arrangements for government bond dealers. Overnight repurchase allows traders to sell government bonds to investors and repurchase them at a slightly higher price the next day.

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McDermott referred to transactions as the key moment in the digitization of transaction activities. He emphasized that unlike traditional repo markets, blockchain technology can record the exact time of transactions.

McDermott said that smart contracts on the blockchain enable collateral and cash to be swapped in real time at the same time, which is a big step forward for the repo market:

“We pay interest by the minute. We firmly believe that this will change the nature of the intraday market.”

JP Morgan Chase first announced Launch your own stablecoin As early as the beginning of 2019, the initial focus was on the international settlement of large companies. The first transaction started in DecemberSince then, JPM Coin has been favored by multinational companies for all-weather cross-border payments.

The bank established its version of the Ethereum blockchain Onyx, which currently processes more than $1 billion in transactions every day.