DBS Transacts Intraday Repo on JPM’s Onyx

DBS says it has become the first bank in Asia to complete an intraday repo transaction on JP Morgan’s Onyx Digital Assets.

Formed in 2020 by JP Morgan, Onyx is a blockchain-based network that supports instant settlements and maturity of transactions within hours rather than the current industry norm of one or two days, using JPM Coin, a permissioned payment rial and deposit ledger. The transaction marks the first time that JP Morgan has acted as both triparty agent and collateral token agent.

“Repos are a traditional and well-established method of raising financing, but infrastructural and technical inefficiencies meant the minimum term has usually been one day,” says Andrew Ng, head of treasury and markets at DBS. “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 timeframes which are beneficial to our liquidity needs.

“As a bank that is known to be at the forefront of digital transformation, we will continue to leverage leading technologies to provide market participants with accelerated access to liquidity coupled with better risk management,” he adds.

Scott Lucas, head of markets distributed ledger technology at JP Morgan, adds, “Our intraday repo solution helps clients boost operational efficiencies and accelerate settlement times for their repo activities. We are excited to have our first Asia-domiciled client live on the application, as the network continues to grow.”