Starting next month, Onyx by JP Morgan will enable its JPM Coin tokenized deposit solution to be used for on-chain settlement for Broadridge’s Distributed Ledger Repo (DLR) platform. Synchronizing the two blockchain networks will enable delivery versus payment for intraday repo transactions.
“We are delighted to launch our synchronised settlement solution using JPM Coin through our work with Broadridge,” said Nelli Zaltsman, head of platform settlement solutions at Onyx. “At Onyx, we look to be the foremost provider of Cash-on-Chain solutions to existing and steadily growing digital asset platforms globally.”
This initiative marks the first use of JPM Coin to settle on-chain transactions not executed on the Onyx blockchain. However, Vodafone’s blockchain subsidiary PairPoint recently mentioned integrating with JPM coin.
JPM Coin first launched in late 2020 and achieved daily volumes of $1 billion last year. The Onyx blockchain handles up to $2 billion transactions a day including others Onyx Digital Asset solutions, such as its own intraday repo solution targeting JP Morgan clients.
If many of Broadridge’s DLR users adopt JPM Coin, the collaboration could see a big bump in Onyx volumes. While Onyx has processed a cumulative $1 trillion in notional transactions, last year Broadridge’s DLR started executing those volumes on a monthly basis. However, several DLR clients are big banks such as UBS, HSBC and Societe Generale, which may be more reluctant. However, DLR is not only used by banks. For example, trading firm DRW uses Broadridge’s DLR and is also extremely blockchain savvy.
Onyx blockchain is becoming a little more open
Using JPM Coin for cross chain settlement is just one example of Onyx becoming more open. Earlier this week Onyx revealed it is looking to collaborate with third parties interested in deploying apps on the Onyx blockchain.
One question is which technical solution the companies are using to synchronize their blockchains. Onyx uses a permissioned version of Ethereum and DLR uses the DAML smart contract language and the VMWare blockchain, but the latest version of DAML includes the Canton blockchain.
“We are in the process of migrating to a purely DAML/Canton stack, which will be completed by end of month,” Horacio Barakat, Broadridge’s Head of Digital Innovation, told Ledger Insights via email. “To achieve the interoperability with JPM Coin, we are using an API-based mechanism that is replicable for a wide range of platforms.”
Update: added response from Broadridge regarding interoperability
