Following a half-a-year period of looking into JPMorgan Chase’s custom blockchain offering dedicated to repo markets, Goldman Sachs has reportedly begun trading on the platform. 

Specifically, Matthew McDermott, global head of digital assets for Goldman Sachs’ global markets division, reportedly revealed that the first transaction is slated to be carried out on June 17th. 

The trade will reportedly see Goldman Sachs trade US digitized treasury bonds for JPM Coin, JPMorgan’s dollar-pegged stablecoin. 

JPMorgan reportedly rolled out its private blockchain offering last year, with an aim to make repo agreements more efficient, with the platform to utilize JPM Coin for the swapping of digitized United States Treasury bonds.

Goldman Sachs was reportedly among the first financial entities to pay attention to the platform. In 2020, McDermott talked about how JPMorgan’s blockchain-powered repo-market service is efficient, sharing that corporations have an opportunity to tackle a real-world issue in the financial network. 

As a trillion-dollar market, repurchase or “repo” agreements reportedly function as lending deals for a short amount of time, catering to dealers in government bonds. An overnight repo will reportedly assist the selling of government bonds to investors, as well as leaving a window for buying it again the following day with a slight surge in price value. 

Regarding the trade as a milestone of crucial importance for the digitization of transactional activity, McDermott further remarked that blockchain helps record the exact timing of the transaction, compared to the traditional repo market. 

“We pay interest per the minute. We firmly think this will change the nature of the intraday marketplace.” McDermott additionally claimed.