Blockchain is meant to break down silos, but in a multi-DLT world, the challenge is to allow different networks to interact to prevent new ones. HQLA^X, JP Morgan, Ownera, and Wematch simulated a delivery versus cross-chain payment repo transaction. JP Morgan is an investor in the other three platforms.

Security was at HQLA^X ledger using the R3 Corda enterprise blockchain, and the cash used for the settlement was that of JP Morgan, using Quorum-sanctioned DLT.

With the operation registered in WeMatch, Ownera’s FINP2P routing solution connected the two ledgers for both the payment and value tranches and with Wematch for visibility.

Ledger Insights has written extensively about all three blockchain-related offerings.

HQLA^X tokenizes securities in a particular custodian by creating digital collateral records. Deutsche Börse acts as a trusted third party, confirming that the underlying securities are locked with a custodian. This allows banks to move quickly between conventional securities, enabling intraday settlement by avoiding delays in transferring assets between custodians. JP Morgan, Goldman Sachs, and BNY Mellon are among its many big-name investors. And the tri-party agents and custodians involved include Clearstream, Euroclear, JP Morgan, BNY Mellon, BNP Paribas and Citi.

It started by allowing banks to use delivery versus delivery to exchange high-quality liquid assets to ensure they comply with the Basel III rules. More recently, it has been used for securities lending.

JP Morgan was one of the first big banks to tokenize bank money as JPM Coin. Companies like Siemens are already using it. It is also one of the joint venture participants in Singapore’s Partior, which is working on a multi-currency interbank payment network. The bank is also a pioneer among institutions in leveraging DeFi technology, such as automated market making to enable 24/7 forex transactions.

Ownera founded the open source FINP2P protocol, which links various blockchains and mainstream systems, including public blockchains. However, FINP2P itself is not blockchain-based. It is a routing network. In September, JP Morgan participated in its $20 million funding round.

While FINP2P was one of the first to interconnect numerous institutional platforms at scale, SWIFT is also considering the blockchain interoperability opportunity. It recently completed a trial with SETL, Clearstream and Northern Trust. And it is also exploring integration with public blockchains through a proof of concept with Chainlink.