At the start of the year Santander Corporate & Investment Banking (CIB) announced it executed two programmable intraday repo transactions with JP Morgan using the JP Morgan Kinexys Digital Assets platform (formerly Onyx). One of the blockchain repo transactions was for $50 million and the other €50 million, with Santander as the seller and JP Morgan the buyer in both cases.
The surprise was that this is the first non-dollar intraday repo transaction on the platform that didn’t involve a JP Morgan entity on both sides. That’s despite the launch of the repo platform more than four years ago, and demonstrates the need for patience.
Intraday repo is seen as one of the killer apps for institutional blockchain and tokenization, with Broadridge supporting around $1.5 trillion in transactions monthly. Both JP Morgan and Santander have been exploring new repo initiatives. Separately they have each run repo trials with the European tokenized collateral platform HQLAᵡ, in which JP Morgan is an investor. HQLAᵡ soon plans to launch an intraday repo solution with Fnality providing the GBP cash settlement leg of the transactions. Santander is a founding investor in Fnality.
Meanwhile, Kinexys continues to grow and now processes around $2 billion transactions daily across all its applications, including Kinexys Digital Payments (formerly JPM Coin).
