In a landmark move for blockchain-based financial transactions, Broadridge has announced a partnership with JP Morgan to utilize JPM Coin as a settlement mechanism on its Distributed Ledger Repo (DLR) platform. This integration marks the first time JPM Coin will be used for settlement capabilities on an external digital platform, a significant step in the evolution of digital asset management.
The DLR platform, leveraging distributed ledger technology, provides Broadridge clients with enhanced intra-day, overnight, and term repo capabilities. By incorporating JPM Coin, the platform aims to streamline and synchronize settlement processes, enhancing efficiency and security in financial transactions.
Nelli Zaltsman, Head of Platform Settlement Solutions at Onyx by JP Morgan, expressed enthusiasm about the collaboration: “We are delighted to launch our Synchronized Settlement solution using JPM Coin through our work with Broadridge. At Onyx, we aim to be the foremost provider of Cash-on-Chain solutions to existing and steadily growing digital asset platforms globally.”
JP Morgan’s blockchain unit, Onyx, developed JPM Coin to address the industry’s need for reliable “cash-on-chain” solutions. The integration with Broadridge’s DLR platform will provide synchronized settlement across blockchain networks, ensuring secure and efficient delivery versus payment (DvP) cross-chain transactions. This involves “locking” cash and releasing it simultaneously with asset transfers, a process designed to mitigate risks and improve transaction reliability.
The partnership is set to go live by June, positioning JPM Coin as a potential framework for other cash settlement solutions across various digital platforms. JP Morgan highlights the innovative approach as a significant advancement in the lack of current cash-on-chain solutions, aiming to set a precedent for future digital financial ecosystems.
As the digital asset landscape continues to grow, this collaboration between Broadridge and JP Morgan exemplifies the potential of blockchain technology to revolutionize financial settlements, providing a more secure, efficient, and transparent process for global financial transactions.