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According to a report by the Financial Times, French banking giant BNP Paribas (EPA) has joined the blockchain-based JPMorgan Network (JPM) to trade in the fixed-income market.
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 actually leaving their balance sheet.
Three-quarters of buyback or “repo” transactions are backed by government bonds, which means it is one of the most important sources of collateral for banks to fund their balance sheets.
Goldman Sachs (GS) has also previously used JPMorgan’s network for repo trading.
Since its launch in 2020, the Onyx network has made about $300 billion in intraday repo deals.
“We see this as part of our efforts to leverage the technology throughout the trading and operations lifecycle as the market evolves,” joe Bonno, BNP Paribas’ chief operating officer for global markets, said in a report released Monday.
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