J.P. Morgan, HQLA-X, and Ownera introduce Intra-Day Repurchase Agreement solution
In a significant move for the financial industry, J.P. Morgan, HQLA-X, and Ownera have joined forces to launch a groundbreaking cross-ledger repo solution. This innovative platform facilitates precise intraday settlement, allowing repo traders to exchange cash held at J.P. Morgan and collateral held at HQLA-X with settlement and maturity times specified down to the minute.
The solution orchestrates the full lifecycle of repo transactions—including execution, clearing, and delivery-versus-payment (DvP)—across separate digital ledgers. Ownera’s routing technology, built on the open FinP2P protocol, enables seamless peer-to-peer communication between platforms.
This minute-precise settlement capability ensures that securities and cash exchanges are synchronized in real-time, improving operational control and enabling faster financial cycles during the trading day. The DvP mechanism adapted for this multi-ledger environment preserves efficiency and security while guaranteeing simultaneous asset and cash delivery, critical for reducing counterparty risk and optimizing liquidity management.
The platform’s design reduces market fragmentation by supporting interoperable digital cash and collateral systems at an industry-wide scale. Traders can seamlessly swap digital cash (via J.P. Morgan’s Kinexys blockchain-based deposit accounts) for tokenized collateral on HQLA-X intraday, making liquidity management more efficient. The platform's scalability anticipates future integration with multiple trading venues, additional collateral sources, and digital cash instruments like stablecoins and central bank digital currencies (CBDCs), further enhancing flexibility and liquidity optimization.
Richard Glen, Solutions Architect Lead at HQLA-X, has commented on the solution, stating it transforms how clients manage intraday liquidity. Dan Phillips, Executive Director of Markets Digital Assets at J.P. Morgan, has expressed support for Ownera's role in enabling growth in the institutional DLT ecosystem. Ami Ben-David, CEO and Founder of Ownera, has expressed excitement about the solution's scalability and potential expansion across the broader market. J.P. Morgan looks forward to supporting its clients' intraday Repo needs using the new solution in collaboration with HQLA-X and Ownera.
The first phase of the solution is live, with executed transactions reaching up to $1bn in trading volume per day. This solution is a crucial, foundational step towards a truly interconnected and highly efficient global Repo market.
- The cross-ledger repo solution developed by J.P. Morgan, HQLA-X, and Ownera, utilizing technology like Ownera's routing technology and the open FinP2P protocol, enhances liquidity management in the digital assets industry by facilitating precise intraday settlement and interoperable digital cash and collateral systems.
- The innovative platform, designed to support various trading venues, additional collateral sources, and digital cash instruments like stablecoins and central bank digital currencies (CBDCs), has the potential to revolutionize the financial industry, particularly in optimizing liquidity management and reducing counterparty risk.
- Richard Glen, Solutions Architect Lead at HQLA-X, believes that the platform's minute-precise settlement capability and DvP mechanism, adapted for a multi-ledger environment, are transformative in managing intraday liquidity for clients in the finance industry.
