Goldman Sachs Conducted First Trade on JPMorgan Blockchain Platform

The investment bank Goldman Sachs joined JPMorgan’s blockchain-based network to conduct repo transactions using smart contracts and a digital version of the dollar.

According to Bloomberg, the first transaction was conducted on June 17, 2021. The institution exchanged tokenized U.S. Treasuries for JPM Coin stablecoins.

“We view this as a key milestone in the digitisation of deal operations,” said Matthew McDermott, head of Goldman Sachs’ Digital Assets division.

The transaction took three hours and five minutes, its amount not disclosed. According to McDermott, knowing the exact time spent on the deal represents a major leap forward relative to existing markets. Thanks to smart contracts, asset exchanges occur instantaneously.

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

Соглашение РЕПО basically allows taking a short-term loan secured by securities. Legally it is framed as a purchase and sale.

JPMorgan launched the repo market on the Onyx blockchain platform in December. Daily trading volume exceeds $1 billion.

According to spokesperson Jessica Francisco, the conglomerate is in talks to join the network with around a dozen banking and investment clients.

Earlier, JPMorgan announced the creation of a blockchain platform for interbank payments, trading and settlements in foreign currency.

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