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Singapore's OCBC bank executed an intraday reverse repurchase (repo) transaction on JP Morgan's Onyx Digital Assets platform, in which it lent money to JP Morgan, receiving tokenized securities in exchange. Less than four hours later, the transaction was unwound together with interest. JP Morgan said this was the first time an external counterparty had the ability to execute reverse repos. It's usually JP Morgan that does the cash lending to clients, taking tokenized securities in exchange. So far it has ten clients using the repo platform, which has conducted a cumulative $1.5 trillion in transactions since its launch in 2020."

JPMorgan Chase's JPM Coin digital currency JPM is being used commercially for the first time this week by a large technology client to send payments around the world. That development, along with other behind-the-scene moves, persuaded JPMorgan to create a new business to house its blockchain and digital currency efforts called Onyx. https://www.jpmorgan.com/onyx/index

The first live trades JPMorgan conducted were between the bank's broker-dealer and banking units, using the Onyx blockchain platform. In a test environment, JPMorgan has also traded with Goldman using Bank of New York Mellon Corp. as the triparty agent. Goldman is expecting to join Onyx for intraday repo trading as soon as January.

"JP Morgan already enables tokenized U.S. dollar deposits with JPM Coin. Now it plans to enable blockchain-based Euro deposits 'soon'… Most blockchain financial applications sit under JP Morgan's Onyx division. This includes Onyx Digital Assets with an intraday DLT repo application, Liink for messaging around conventional payments and JPM Coin. It's also experimenting with using JPM Coin on a public blockchain as part of Project Guardian, its Singapore DeFi experiments with the Monetary Authority of Singapore."

The Central Bank of Bahrain successfully completed a test of J.P. Morgan's JPM Coin System's Onyx. The test enabled Bank ABC to initiate real-time payments from Aluminium Bahrain (ALBA) to ALBA's US counterparties. JPM Coin System is a permissioned blockchain-based system that serves as a payment rail and deposit account ledger, enabling participating entities to transfer US Dollars held on deposit with J.P. Morgan.

"We believe a version of decentralized finance (DeFi) called "Institutional DeFi", which combines the innovations of DeFi protocols with the safeguards of today's finance industry, has the potential for growth and transformative impact. The aim of this joint report by the Oliver Wyman Forum, DBS, Onyx by J.P. Morgan, and SBI Digital Asset Holdings is to help business executives understand the potential benefits of adapting decentralized finance (DeFi) protocols in the finance industry using tokenized real-world asset. This paper explains what industry participants need to do to achieve regulatory clarity, drive commercial adoption, and get the greatest benefits out of Institutional DeFi for their clients and themselves."

In collaboration with the Italian Banking Association Innovation Lab (ABI Lab) and 8 of its banking partners, the Banque de France (BdF) settled, in its DL3S platform and in a tokenized representation of central bank money (CeBM), several automated wholesale payments instructed by ABI Lab's Leonidas distributed ledger technology (DLT) platform. Leonidas is an emanation of the highly successful Spunta project launched by ABI Lab in 2020, which now manages 200 million transactions yearly. Leonidas aims at calculating and settling liquid balances between participating banks, and experimenting settlement in central bank money. A similar experiment has been completed with JP Morgan S.E. using its ONYX DLT platform.

"The Monetary Authority of Singapore and the Banque de France today announced the successful completion of a wholesale cross-border payment and settlement experiment using multiple central bank digital currencies (mCBDCs). The experiment between the two central banks, supported by J.P. Morgan's Onyx, simulated cross-border transactions and cross-currency transactions involving a Singapore dollar CBDC and a euro CBDC, and was conducted using a permissioned, privacy-enabled blockchain based on Quorum technology." For more detail see: https://www.mas.gov.sg/news/media-releases/2021/monetary-authority-of-singapore-and-banque-de-france-break-new-ground-in-cbdc-experimentation

The Oliver Wyman Forum, in partnership with DBS, JP Morgan's Onyx, and SBI, published a paper that makes the case for "institutional DeFi" , a system that combines the power and efficiency of decentralized finance (DeFi) software protocols with a level of protections and controls that regulators demand and customers expect. These include identity solutions to enable financial institutions to comply with anti-money laundering (AML) and know your customer (KYC) regulations, strong cybersecurity to minimize the threat of hacking incidents, and recourse mechanisms to make investors whole if something goes wrong.

"No cryptocurrency has anything like the capacity to serve as a medium of exchange in the modern retail economy. Blockchain is an interesting and useful technology, suitable for small networks, centrally administered, that need quick and reliable execution on high-value transactions. The Onyx system developed by JP Morgan for settlement of wholesale inter-bank repo transactions is an example that seems to be successful. But blockchain cannot currently address the capacity requirements of massive retail payments systems."

Onyx by JP Morgan has launched programmable payments for blockchain-based accounts on JPM Coin. The solution allows users to use an if-this-then-that interface to program their transactions. Customers can control their JPM Coin accounts in new ways such as dynamic funding, in which they can apply various rules for funding a bank account in case of shortfalls, and event-based payouts, in which they can execute transactions depending on various needs such as delivery of assets. On November 6, Siemens AG completed its first payment using the feature, and FedEx and Cargill will be going live with the solution in the next few weeks.

First Abu Dhabi Bank (FAB) is the first financial institution to pilot JPM Coin programmable payment functionality. FAB's trials included initiating payments based on time triggers and balance thresholds, for example, the transfer of funds out of an account if the balance is too high, or into the account if it's too low. Or, a planned payment is only sent out depending on its impact on the account balance. https://www.bankfab.com/en-ae/about-fab/group/in-the-media/fab-successfully-pilots-programmable-payments-through-onyx-by-jp-morgan