Onyx, J.P. Morgan’s blockchain business unit, and Broadridge announced that JPM Coin will be used as the settlement mechanism for the DLR (Distributed Ledger Repo) platform.
JPM Coin will complement DLR’s repo capabilities, which offer intra-day repo in addition to the current overnight and term repo capabilities prevalent in the market. The two firms have successfully tested use of JPM Coin with DLR, and it is anticipated that JPM Coin will be available to Broadridge users as a settlement solution by June 2024.
This would be the first instance of JPM Coin providing settlement capabilities to an external digital platform and given the lack of “cash-on-chain” solutions in the industry today, this offering could act as a framework for other cash settlement solutions for other digital platforms going forward.
The solution involves synchronized settlement across the two blockchain networks achieving delivery vs. payment (DVP) cross-chain, on the basis of “locking” cash and releasing it synchronously with the asset transfers.
Nelli Zaltsman, head of Platform Settlement Solutions at Onyx by J.P. Morgan, said in a statement: “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, said in a statement: “DLR continues to drive the transformation of global repo market infrastructure and this collaboration with JPM Coin represents another step in the digitization 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.”