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Investment bank Goldman Sachs has joined financial holding company JPMorgan's blockchain network to conduct repurchase transactions using smart contracts and a digital version of the dollar, Bloomberg has reported.

Last June 17, the bank conducted the first transaction in which Goldman Sachs exchanged tokenized US Treasury bonds for the stablecoin JPM Coin. Mathew McDermott, head of digital assets at Goldman Sachs, said:

"We see this as a pivotal moment for the digitization of transactional activity."

The transaction, whose amount has not been disclosed, took three hours and five minutes to complete. According to McDermott, knowing the precise timing of a transaction is a big step forward compared to existing markets. Thanks to smart contracts, the exchange of assets happens instantly. He said:

"We pay interest per the minute. We firmly think this will change the nature of the intraday marketplace."

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The repo agreement actually allows to take out a short-term loan secured by securities. This is legally formalized as a purchase and sale.

JPMorgan launched a repo market on the Onyx blockchain platform back in December. Its trading volume has exceeded $1 billion.

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