Brevan Howard Digital (BH Digital), the dedicated digital asset division of Brevan Howard, is the latest client of Onyx by JP Morgan. It’s using JPM Coin Systems to enable cross border programmable payments 24/7. Additionally, it plans to onboard partners that are part of the asset management ecosystem.
JP Morgan is the world’s biggest provider of US dollar accounts globally. JPM Coin is a blockchain-based bank account that allows JP Morgan clients to move money between their accounts held at JP Morgan branches around the world. That’s extremely useful for asset managers, ensuring they have the cash in the right place at the right time, instantly and on demand, with the added advantage of programmability.
“The team at Onyx by J.P. Morgan have created an excellent DLT use case, providing clear efficiency gains for fiat transfer rails,” said Gautam Sharma, CEO & CIO, BH Digital. “This offers huge potential across our business, and indeed the industry more broadly. In fact, we are already working to implement JPM Coin System with a number of our partners.”
Amongst asset managers, BH Digital is the traditional finance (TradFi) institution that has most explored stablecoins, publishing two reports on the topic. So a relevant question is how its use of stablecoins crosses over with using JPM Coin. We hope to provide an answer.
Of course, most payments today still use conventional money, which is the biggest argument. On boarding and off boarding from a stablecoin might happen in one or two jurisdictions, but that cash might be needed in other places. Plus, as an asset manager, BH Digital isn’t going to keep large amounts of cash in stablecoins that don’t earn a yield.
Meanwhile, Umar Farooq, Global Co-Head, J.P. Morgan Payments, commented, “We’re proud to be the leader in the industry with the first blockchain-based wholesale payments platform for commercial bank money, enhancing Brevan Howard’s business with seamless payment settlements.”
Ledger Insights has just published a report on tokenized deposits and bank stablecoins.
