French international banking firm BNP Paribas has joined JP Morgan’s blockchain network to offer fixed income market trading.
The repurchase market, also called repo, will be used by investors to borrow assets for a few days and the central banks to execute its monetary policies.
BNP Paribas’ global markets chief operating officer, Joe Bonnaud, says that the opportunity is important for trading and operation lifecycle as the market progresses. Goldman Sachs is another financial company that uses Onyx for repo trading.
About 75% of the deals are supported by the government bonds as per the Bank for International Settlements, making it an important source of high collateral for banks to finance their balance sheets.
Onyx Digital Assets network uses tokens for short-term trading in fixed income markets, allowing investors to lend assets for a short duration without moving them out of their balance sheets.