- Goldman Sacks used the JPMorgan (NYSE:JPM) blockchain for a repo trade.
- The JPMorgan repo market has facilitated over $1 billion in trades to date.
- Also, JPMorgan is not the only Wall Street bank delving into blockchain.
Financial giant Goldman Sachs (NYSE:GS) recently made its first blockchain-based repo trade. Of note, the bank used rival bank JPMorgan’s blockchain to facilitate the transaction.
Specifically, repurchase agreements (repo) are a form of short-term borrowing using government securities. The dealer sells the government security, in this case, bonds, overnight. Only to buy the security back the next day at a slightly higher price.
JPMorgan’s blockchain uses contracts and its stablecoin JPMCoin as a digital and faster means to execute repo trades. As such, Goldman swapped a tokenized version of a US treasury bond using the JPMCoin. Notably, the stablecoin is pegged 1:1 with the US dollar.
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This article was first published on coinquora.com