JP Morgan starts on-chain report transactions with Practical Blockchain "Kinexys"

## Daily Trading Volume reached 147 billion yen

The financial giant JP Morgan announced on the 7th that it has begun providing an on-chain intraday repo solution utilizing its self-developed blockchain "Kinexys" in collaboration with HQLAx and Ownera.

Repo traders can now settle cash with JP Morgan and collateral with HQLAx during the day. The settlement time and maturity time can be specified in minutes.

The first phase of the solution is already operational, and the trading volume has reached up to 1 billion dollars (approximately 147 billion yen) per day. Further increases are expected in the future.

What is report trading?

In English, a Repurchase Agreement refers to a buyback contract transaction. One party sells a security to another party and agrees to repurchase it at a predetermined price after a specified period. Essentially, it is considered a secured short-term loan.

Additionally, "Kinexys (formerly Onyx)" is a private blockchain based on Ethereum (ETH) launched by JP Morgan in 2020. It facilitates the trading of tokenized assets and global payments using the digital currency "Kinexys Digital Payments (formerly JPM Coin)."

HQLAx is a financial technology company specialized in providing liquidity and collateral management solutions for institutional investors in the global securities lending and repo market.

This report solution allows the ownership of securities on the HQLAx platform to be exchanged for cash settled through JP Morgan's digital financial application via an account on JP Morgan's Kinexys.

JP Morgan and HQLAx coordinate the entire repo transaction from trade execution to the exchange of collateral and cash, ensuring precise settlement. This allows participants in repo transactions to optimize intraday liquidity.

Ownera is a company that provides interoperability solutions in the field of digital assets. The company's router connects tokenized assets distributed by sellers with the demand from buyers, achieving global liquidity.

In this solution, Ownera's router connects market participants peer-to-peer and integrates the application layer across the entire digital platform.

Ownera's CEO and founder, Ami Ben-David, commented as follows.

The day-to-day report is one of the most attractive use cases among tokenized assets. Reaching a trading volume of up to 1 billion dollars per day has become a wonderful example demonstrating the scalability of this model.

We want to further develop this momentum and expand this solution to a broader market in an open and collaborative manner.

The platform launched this time is designed to be expandable in the future to various exchanges, collateral sources, and digital cash methods (such as deposit tokens, stablecoins, and central bank digital currency solutions).

Moreover, regarding tokenization, in July, Paul Atkins, the chairman of the U.S. Securities and Exchange Commission (SEC), revealed that he is considering regulatory exemptions for security tokenization to encourage innovation.

In July, JP Morgan announced a partnership with major cryptocurrency exchange Coinbase, primarily in the stablecoin sector.