JP Morgan’s blockchain-based bank accounts – Kinexys Digital Payments – can now be used to settle intraday repo transactions involving collateral on the HQLAX platform. While each DLT solution has been in production for years, the integration was enabled by Ownera, which routes transactions between separate DLTs using its FinP2P offering. The three firms first demonstrated the solution back in 2022. So far transactions have been up to $1 billion a day, with $5 billion in the first month.
This involved an integration with the existing intraday repo solution from JP Morgan, Kinexys Digital Financing.
HQLAX provides a DLT solution for collateral mobility. It takes collateral that is held at a custodian – such as government bonds – locks it and issues a digital collateral receipt, which technically is not a token. This enables the almost instant transfer of collateral without having to move assets between custodians, which takes days. However, until recently it mainly dealt with collateral swaps as it lacked a real time cash solution. Of course, one of the biggest demands for collateral is to use it for repo purposes.
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