According to Bloomberg, Goldman Sachs Group has joined Onyx, JPMorgan Chase’s online trading platform based on the Ethereum blockchain.
Goldman Sachs is using the technology to execute smart contracts and a digital version of the dollar repurchase agreement, known as Repo.
In the repo market, doing large-scale transactions in a short period is difficult. However, digital currency upgrades and blockchain-based intelligent contract transactions can alleviate this problem by allowing cash and Treasury bills to be repaid instantly.
Goldman Sachs utilized JPMorgan Chase’s blockchain-based network for trading the tokenized form of US Treasury bonds with JPMCoin on June 17, according to Mathew McDermott, Global Head of Digital Assets at Goldman Sachs Global Markets.
Mathew McDermott did not reveal the transaction’s value but did say that:
“We see this as a pivotal moment for the digitization of transactional activity.”
McDermott estimated that it would take 3 hours and 5 minutes to execute the deal using banking services, noting that knowing the exact time is a significant improvement over the existing market, as collateral and cash are exchanged simultaneously and instantly.
He said, “We pay interest per minute. We are convinced that this will alter the character of the intraday market.”
According to reports, JPMorgan Chase created a new repo market using its version of the Ethereum blockchain and completed its first transaction in December. Since then, everyday transactions on its Onyx blockchain network have surpassed $1 billion.