JP Morgan, HQLAχ, and Ownera unveil a joint distributed ledger technology (DLT) repository solution

JP Morgan, HQLAχ, and Ownera unveil a joint distributed ledger technology (DLT) repository solution

In a groundbreaking development, JP Morgan, HQLA, and Kinexys Digital Payments have collaborated to create a blockchain-powered intraday repo platform. This innovative solution, enabled by Ownera's FinP2P protocol, offers minute-level settlement precision, cross-platform interoperability, and secure delivery-versus-payment (DvP) execution.

Until recently, HQLA mainly dealt with collateral swaps due to a lack of real-time cash solution. However, the integration of Kinexys Digital Payments has enabled JP Morgan's intraday repo transactions on the HQLA platform. Transactions using this solution have reached up to $1 billion a day and $5 billion in the first month, demonstrating its scalability and institutional acceptance.

Ownera, a company that specialises in integrating blockchains, has played a crucial role in this collaboration. By routing transactions between separate distributed ledger technologies (DLTs), Ownera has enabled seamless, blockchain-based exchange of cash held at JPMorgan and collateral on the HQLA platform. This peer-to-peer, cross-ledger infrastructure allows for settlement and maturity times specified to the minute.

The FinP2P protocol serves as a digital "lingua franca", linking different ledgers in a peer-to-peer fashion, thereby facilitating frictionless interoperability among otherwise siloed financial systems and APIs. This full repo lifecycle automation manages trade execution, collateral management, and intraday settlement, supporting both bilateral and tri-party repo agreements while reducing counterparty risk and operational overhead.

The solution's delivery-versus-payment (DvP) mechanism, adapted for multi-platform environments, guarantees simultaneous transfer of cash and securities, preventing settlement risk through smart contracts running on the blockchain. This ensures that the exchange of cash and securities happens in real time during the intraday lifecycle of repo transactions.

JP Morgan's investment in Ownera, as part of the Series A round, underscores the bank's commitment to this innovative collaboration. HQLA, an investment of JP Morgan alongside several systemically important banks, is also a testament to the potential of this groundbreaking solution.

In summary, Ownera's FinP2P protocol enables JPMorgan, Kinexys, and HQLA to offer a blockchain-powered intraday repo platform that achieves minute-level settlement precision, cross-platform interoperability, and secure DvP execution by digitally linking cash and collateral across distinct ledgers in a seamless, peer-to-peer manner.

[1] Ownera Press Release, "Ownera Enables JPMorgan, Kinexys, and HQLA to Launch Blockchain-Powered Intraday Repo Platform", link

[2] JP Morgan Press Release, "JPMorgan and HQLA Collaborate to Revolutionize Intraday Repo Transactions", link

[3] Kinexys Digital Payments Press Release, "Kinexys Digital Payments Enables Intraday Repo Transactions on HQLA Platform", link

[4] Coindesk, "JPMorgan, Kinexys, and HQLA Partner with Ownera to Settle Intraday Repo Transactions on Blockchain", link

[5] Financial Times, "JPMorgan, Kinexys, and HQLA Use Ownera's FinP2P Protocol for Intraday Repo Transactions", link

1. This blockchain-powered intraday repo platform by JP Morgan, HQLA, and Kinexys Digital Payments, enabled by Ownera's FinP2P protocol, offers minute-level settlement precision, cross-platform interoperability, and secure DvP execution.
2. The innovation, led by Ownera's expertise in integrating blockchains, allows for seamless, blockchain-based exchange of cash held at JPMorgan and collateral on the HQLA platform.
3. The FinP2P protocol serves as a digital "lingua franca", linking different ledgers in a peer-to-peer fashion, thereby facilitating frictionless interoperability among otherwise siloed financial systems and APIs.
4. The solution's DvP mechanism guarantees simultaneous transfer of cash and securities, preventing settlement risk through smart contracts running on the blockchain.
5. The industry news has been abuzz with the scalability and institutional acceptance of this groundbreaking solution, as transactions have reached up to $1 billion a day and $5 billion in the first month.
6. JP Morgan's investment in Ownera, as part of the Series A round, underscores the bank's commitment to this innovative collaboration and its confidence in the potential of the solution.
7. HQLA, an investment of JP Morgan alongside several systemically important banks, is a testament to the innovative implications of this blockchain-powered intraday repo platform for the industry.
8. In this business collaboration, technology such as data-and-cloud-computing, artificial-intelligence, and fintech have played significant roles in creating this efficient solution that streamlines repo transactions.
9. As cyberssecurity becomes an increasing concern in the finance, banking-and-insurance, and personal-finance sectors, the blockchain-powered intraday repo platform offers improved security and reduces counterparty risk, providing benefits beyond just operational efficiency.

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