J.P. Morgan, in collaboration with HQLA-X and Ownera, introduce an intraday repo solution
In a groundbreaking move, J.P. Morgan, HQLA-X, and Ownera have joined forces to launch a cross-ledger repo solution. This innovative platform is designed to optimize intraday liquidity by facilitating precise, near-instantaneous settlement of cash and securities on different digital ledgers.
The solution allows repo traders to exchange digital cash held on J.P. Morgan’s Kinexys platform against digital collateral tokenized on the HQLA-X platform. With settlement times specified down to the minute, the platform provides unprecedented control and acceleration of financial cycles within the same trading day.
The peer-to-peer architecture of the platform, using the open FinP2P protocol developed by Ownera, acts as a digital interoperability layer connecting multiple blockchain platforms without friction. It incorporates a delivery-versus-payment (DvP) mechanism adapted for cross-platform environments, ensuring that securities and cash exchanges happen simultaneously and securely.
Richard Glen, Solutions Architect Lead at HQLA-X, comments on the solution transforming how clients manage intraday liquidity. He states, "The solution offers precision, speed, certainty, and control in managing intraday liquidity."
Ami Ben-David, CEO and Founder of Ownera, has also commented on the launch of the solution. He expresses his enthusiasm, stating, "Our market leading routing technology allows for the orchestration of full Repo transaction lifecycles."
Dan Phillips, Executive Director of Markets Digital Assets at J.P. Morgan, expresses support for Ownera's role in enabling growth in the institutional DLT ecosystem. He states, "We look forward to supporting our clients' intraday Repo needs in collaboration with both HQLA-X and Ownera."
The solution is designed to operate at an industry-wide level, potentially supporting multiple trading venues, collateral sources, and digital cash instruments. It may include deposit tokens, stablecoins, and emerging central bank digital money solutions.
In its initial deployment phase, the platform has demonstrated strong adoption, recording daily trading volumes up to $1 billion in intraday repo transactions. This highlights the capacity of the solution to significantly improve market efficiency and liquidity utilization.
Key technical points include the use of digital cash on Kinexys network (J.P. Morgan) and tokenized collateral on HQLA-X, Ownera’s routing technology and FinP2P protocol for seamless, secure peer-to-peer communication and settlement orchestration, a DvP settlement model ensuring simultaneous exchange of cash and securities with minute-level timing precision, blockchain-based deposit accounts and tokenization allowing for instant programmable 24/7 settlements, and the reduction of operational friction and counterparty risk, pushing industry adoption towards a more integrated, scalable, and automated repo market infrastructure.
This structural innovation is of strategic importance especially for high-quality liquid assets trading and collateral mobilization in global financial markets. The solution is a crucial, foundational step towards a truly interconnected and highly efficient global Repo market, as per Richard Glen.
[1] J.P. Morgan Press Release, [date], [link] [2] HQLA-X Press Release, [date], [link] [3] Ownera Press Release, [date], [link]
- The cross-ledger repo solution, developed by J.P. Morgan, HQLA-X, and Ownera, aims to revolutionize the finance industry by optimizing intraday liquidity through the use of technology, facilitating precise digital asset settlements within the same trading day.
- The innovative platform, which uses Ownera's market leading routing technology and FinP2P protocol, operates at an industry-wide level, potentially supporting various trading venues, collateral sources, and digital cash instruments such as deposit tokens, stablecoins, and central bank digital money solutions.
- The solution, as stated by Richard Glen, is strategically significant for high-quality liquid assets trading and collateral mobilization in global financial markets, being a crucial step towards a truly interconnected and highly efficient global Repo market infrastructure.
