Goldman Sachs begins trading on JPMorgan repurchase blockchain network
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[NEW YORK] Goldman Sachs Group has joined the blockchain-based network created by JPMorgan Chase & Co for repurchase agreements that use smart contracts and a digitized version of the US dollar.
Its first trade came on June 17, when it swapped a tokenised version of a US Treasury bond for JPMCoin, JPMorgan's internal representation of a digital dollar, according to Mathew McDermott, global head of digital assets for Goldman's global markets division. He declined to give the value of the trade.
"We see this as a pivotal moment for the digitisation of transactional activity," he said on Tuesday in an interview.
Unlike in the traditional repo market, the exact amount of time the banks took to complete the transaction was quantifiable. In this case, it was three hours and five minutes.
"We pay interest per the minute," Mr McDermott said.
JPMorgan created the new repo market using its version of the Ethereum blockchain, with its first trades in December.
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It has since gone on to trade more than US$1 billion a day through its Onyx blockchain platform. The firm is speaking with more than 10 banking and investing clients about joining the repo network, according to spokeswoman Jessica Francisco. Bank of New York Mellon served as the custody agent for the trades.
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