JPMorgan and Broadridge Collaborate to Implement JPM Coin Settlements on DLR Platform
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JP Morgan has reached an agreement with Broadridge. The deal will see JP Morgan provide its JPM Coin virtual currency as a settlement solution for Broadridge’s Distributed Ledger Repo (DLR) platform.
The alliance marks the first occasion where JPM Coin – created by JP Morgan’s blockchain arm Onyx – will offer settlement services to an external online platform.
The Collaboration Aims To Enhance DLR’s Repo Offerings
JPM Coin will improve DLR’s repo offerings. These include intra-day repo alongside the existing term repo and overnight features common in the market. The two companies have effectively tested JPM Coin with DLR. JPM Coin is expected to be accessible to Broadridge clients as a settlement option by June 2024.
JP Morgan asserts that due to the absence of cash-on-chain services in the industry, it could function as a structure for other Payment resolution systems for other online platforms.
The solution comprises coordinated settlement across both blockchain networks. It achieves Inter-chain transaction settlement, where cash is “locked” and released concurrently with the asset transfers.
Nelli Zaltsman, Chief of Platform Payment Solutions at Onyx, a division of JP Morgan, stated that the firm is excited to roll out its coordinated Settlement solution utilizing JPM Coin. He added that this achievement is attributed to the partnership with Broadridge.
He further highlighted that the team at Onyx aims to become the top supplier of blockchain cash solutions for both current and emerging Cryptocurrency exchanges across the globe.
The Alliance Will Propel DLR To Become The Universal Intraday Platform
The chief of Digital Innovation at Broadridge, Horacio Barakat said that DLR is leading the charge in reshaping the infrastructure of the worldwide repo market.
This alliance with JPM Coin is a step forward in modernizing repo markets. He added that this upcoming innovation will drive DLR to become the universal intraday platform. It will utilize current market infrastructure and innovative market infrastructure.
Broadridge is a financial technology firm and a State-owned enterprise services. It was established in 2007 as a subsidiary of management software firm Automatic Data Processing.
The company provides public enterprises with annual reports, proxy statements, and financial documents alongside shareholder communications services like virtual annual forums.
Broadridge’s infrastructure functions as a worldwide communications hub. It promotes corporate governance by creating connections between many public corporations, mutual funds, and millions of institutional and individual investors worldwide.
The firm’s operations structures and technology support the day-to-day trading of over $10 trillion in fixed income, equities, and other securities across the globe.
