French banking giant BNP Paribas (EPA) has joined JPMorgan’s (JPM) blockchain-based network for fixed income market trading, according to a report by the Financial Times.
The Onyx Digital Assets network uses tokens for short-term trading in fixed income markets, enabling investors to lend out assets for as little as a few hours without them actually leaving their balance sheets.
Three quarters of deals on the repurchase – or “repo” – market are backed by government bonds, meaning it is one of the most important sources of collateral for banks to fund their balance sheets.
Goldman Sachs (GS) has also previously tapped JPMorgan’s network for repo trading.
Some $300 billion of intraday repo deals have been conducted on the Onyx network since its launch in 2020.
JPMorgan and BNP Paribas were not available for comment at press time.
“We see this as part of our efforts to utilise the technology for the whole trading and operations lifecycle as the market evolves,” Joe Bonnaud, global markets chief operating officer for BNP Paribas said, in the report published on Monday.