OCBC conducted its first reverse repurchase transaction on JP Morgan’s digital financing application on Oct 11. At maturity, which took less than 2 hours, the principal cash amount was returned to OCBC with interest and the bank released the tokenised securities back to JP Morgan.
Oversea-Chinese Banking Corporation (OCBC) has become the first Singapore bank to have intraday institutional lending capabilities. The move will enable the bank to deploy and maximise returns from its excess intraday liquidity, said OCBC in its Oct 30 statement.
This will be done through reverse repurchase transactions on JP Morgan’s digital financing application, built on the Onyx digital assets platform. OCBC will lend cash to JP Morgan and accept tokenised securities as collateral. These transactions can be completed almost instantly, compared to the one business day wait in the traditional repurchase transactions market due to manual processes.
