DBS Bank Completes Intraday Repurchase Transaction On A Blockchain-based Network

The largest lender in Southeast Asia, DBS bank, which is situated in Singapore, claims to be the first bank in Asia to execute an intraday buyback transaction on a blockchain-based network.

The deal was closed using JPMorgan‘s intraday buyback application on Onyx Digital Assets, allowing instantaneous settlements and transaction maturities within hours as opposed to the standard industry practice of one to two working days.

Investors may lend assets for a few hours without leaving their balance sheets thanks to the Onyx Digital Assets network, which employs tokens for short-term trading in fixed-income markets.

Andrew Ng, Head of Treasury and Markets at DBS, said in a statement:

“Repurchase agreements or repos are a traditional and well-established method of raising financing, but infrastructural and technical inefficiencies meant the minimum term has usually been one day.”

Since JPMorgan introduced Onyx in 2020, intraday trading on buyback deals has exceeded $300 billion.

With the help of the Onyx network, banks will be able to settle these transactions faster than in the past—within a couple of hours as compared to one or two business days.

DBS claimed earlier this month that it was among the first institutions to test the trading of foreign currency and government securities on a public blockchain utilizing permissioned decentralized finance (DeFi) liquidity pools.

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