Broadridge and JP Morgan Accelerate Repo Settlement

The use of JP Morgan’s JPM Coin token on Broadridge’s distributed ledger repo (DLR) platform allows faster and more flexible settlement, so participants can manage their liquidity and capital more efficiently. According to a story in MarketsMedia news, the DLR platform uses blockchain technology to offer clients intra-day, overnight and term repo capabilities. Broadridge Financial Solutions launched its distributed ledger repo (DLR) platform in 2021 and the cash leg has been settled using traditional finance payment rails, which is slower than the instantaneous, or atomic, settlement that is now possible on-chain. Repos allow one firm to sell a security to another firm with a simultaneous promise to buy the security back at a later date at a specified price, which has the economic effect of a collateralized loan, as they are mainly used to borrow cash using securities as collateral. Broadridge is incorporating JPM Coin as a digital cash alternative to provide digital settlement for both the cash and securities legs of a repo.