Santander Corporate & Investment Banking announced its transacted a first programmable intraday repo with J.P. Morgan via Digital Financing on their Kinexys Digital Assets platform. Santander acted as repo seller and J.P. Morgan as buyer in these EUR and USD transactions, each with a nominal value of 50 million, programmed to execute at a specific time and redeem after three hours.
In the case of the EUR trade, Santander CIB was the first non-J.P. Morgan entity to execute a non-dollar intraday repo on Digital Financing. These types of transactions are only now viable at scale due to the development of the underlying blockchain technology and extensive legal work done by the world’s largest banks.
“Programmable intraday repos and other digital collateral mobility applications will revolutionize liquidity operations, securities financing and bring us closer to an era of automated balance sheet management,” wrote John Whelan, managing director for Santander’s Digital Assets Unit on Linked In.