JPM D1Goldman Sachs (NYSE: GS) bought a security with a reverse sale commitment through smart contracts on the Onyx blockchain. Bloomberg writes about this with reference to an American bank.
The first deal took place on June 17, when Goldman traded a tokenized version of a U.S. Treasury bond for a digital version of the dollar, JPMCoin. Matthew McDermott, head of digital assets at Goldman, declined to disclose the size of the deal.
“This is a turning point for us in the digitalization of transactions,” McDermott said.
Unlike traditional repo, on the blockchain it is possible to calculate the time to complete an operation. For example, in the case of Goldman, the repo transaction took 3 hours 5 minutes. Timing is important because banks pay interest on a per-minute basis, McDermott said.
“We strongly believe this will change the nature of the intraday market,” he added.
The JPMorgan blockchain is built on the Ethereum ecosystem. It is reported that the bank has been conducting daily trades through it in the amount of more than $ 1 billion since December 2020. JPMorgan spokeswoman Jessica Francisco said the bank is already in talks with more than 10 clients from among the banks to join the repo blockchain network.
This is not the first blockchain development by JPMorgan. In August last year, an American bank sold its Quorum blockchain network to Ethereum incubator ConsenSys. As part of the deal, JPMorgan even invested in ConsenSys itself, but financial details remain unknown.
