Onyx, the blockchain arm of JP Morgan, is collaborating with fintech firm Broadridge to integrate the web3 payment system JPM Coin into one of Broadridge's repo platforms.

This strategic partnership will enable Onyx's JPM Coin to serve as the settlement mechanism for Broadridge's Distributed Ledger Repo platform, which provides intra-day, overnight, and term repo services utilizing blockchain technology. According to a release shared with The Block, Broadridge users can expect the JPM Coin settlement feature to be available by June of this year.

This collaboration marks the first instance of JPM Coin offering settlement functionalities to a third-party digital platform. Repo, short for "repurchasing agreements," involves one entity selling a security to another with an agreement to repurchase it later at a higher price.

"We are delighted to launch our synchronized settlement solution using JPM Coin through our work with Broadridge," said Nelli Zaltsman, Head of Platform Settlement Solutions at Onyx, in a statement. "At Onyx, we aim to be the foremost provider of cash-on-chain solutions to existing and steadily growing digital asset platforms globally."

JPM Coin was initially launched in November 2023, designed to facilitate programmable payments through a permissioned web3 payment system, as previously reported by The Block. This integration with Broadridge's repo platform represents a significant advancement in blockchain-based financial services, leveraging JPM Coin to enhance settlement efficiency and security in the repo market.

The move signifies a substantial step forward in the application of blockchain technology in traditional financial markets, showcasing the potential for increased efficiency and reduced counterparty risk in repurchase agreements.