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Goldman Sachs Group Inc (NYSE: GS) has made its first trade on JPMorgan Chase & Co. (NYSE: JPM) private blockchain network.

What Happened: A report from Bloomberg revealed that the repo trade was conducted on June 17, and the transaction was completed after three hours and five minutes. However, the value of the transaction remains unknown.

Goldman Sachs successfully swapped a tokenized version of a U.S. Treasury bond for JPM Coin – JPMorgan’s stablecoin, which is pegged 1:1 to the value of the U.S. dollar.

Why It Matters: “We see this as a pivotal moment for the digitization of transactional activity,” said Mathew McDermott, global head of digital assets for Goldman’s global markets division.

McDermott believes that the utilization of blockchain technology in the repo market is “a pivotal moment for the digitization of transactional activity,” as, unlike the traditional repo market, the exact timing of each transaction can now be logged.

“We pay interest per the minute. We firmly think this will change the nature of the intraday marketplace,” he said.

Read also: Goldman Sachs Makes Move Into Blockchain With Latest Investment In Crypto Staking Platform Blockdaemon

Smart contracts on the blockchain enable the cash and collateral to interchange simultaneously, and McDermott noted that this is a big step up for the repo market which is valued at $4.6 trillion.

Price Action: Goldman Sachs traded at 0.47% higher in the pre-market session reaching a price of $359, while JPMorgan was up 0.53% at $150.

In cryptocurrency markets, the leading digital asset Bitcoin (CRYPTO: BTC) traded 14.51% higher at a price of $34,285 at the time of writing.