BNP Paribas to use JPMorgan's blockchain network for fixed income trading: FT

French lender BNP Paribas (OTCQX:BNPQF) (OTCQX:BNPQY) on Monday has turned to U.S. rival JPMorgan's (NYSE:JPM) blockchain-powered network for short-term trading in fixed income markets, according to a report by the Financial Times. JPMorgan's (JPM) so-called Onyx Digital Assets network, which has attracted over $300B in intraday repurchase (repo) deals since its rollout in December 2020, allows banks to lend out U.S. government bonds -- without those bonds leaving their balance sheets -- for a few hours as collateral, the FT noted. Specifically, when banks tokenize government debt, of which they hold large amounts due to a slew of post-crisis regulatory requirements, they can briefly turn those assets into collateral without lowering their safety buffers, the FT said. Repurchase agreements are a form of short-term borrowing (typically overnight) of liquid government securities, the safest kind of collateral. As for JPMorgan's (JPM) blockchain, the token represents a digital version of a Treasury bond