French banking giant BNP Paribas (EPA) has joined JPMorgan's (JPM) blockchain-based fixed income trading network, according to a Financial Times report.
- The Onyx Digital Assets network uses tokens for short-term trading in fixed income markets, allowing investors to lend assets for just a few hours without them leaving their balance sheets.
- Three-quarters of trades in the repo market are backed by government bonds, meaning that this market is one of the most important sources of collateral for banks to fund their balance sheets.
- Goldman Sachs (GS) has also already tapped JPMorgan's network for repo trading.
- Since its launch in 2020, the Onyx network has processed about $300 billion worth of intraday repo trades.
- JPMorgan and BNP Paribas could not be reached for comment at press time.
- "We see this as part of our efforts to leverage technology across the trading and operational lifecycle as the market evolves," Joe Bonnaud, chief operating officer global markets at BNP Paribas, said in the report released Monday.