JPMorgan Launches Industry’s First Collateral Settlement Using Blockchain and Digital Tokens

BlackRock used TCN to transform Barclays Plc’s investment in a money market fund into digital tokens.

The forthcoming Benzinga’s Future of Digital Assets conference on November 14 is likely to focus on such innovative uses of blockchain technology as the cryptocurrency industry continues to develop. The conference will dive into the revolutionary potential of cryptocurrency technologies and the innovations that are driving the sector.

Blockchain has been on the minds of Wall Streeters for almost a decade, but it has just a handful of real-world uses.

The transfer of collateral often takes up to a day, but JPMorgan’s Onyx Digital Assets network guarantees almost instantaneous transfer of assets, as underlined by Lobban.

This efficacy may free up funds that may then be used as collateral in subsequent deals. Ed Bond, the head of JPMorgan’s trading services, recently announced the company’s intent to broaden the types of assets that may be used as collateral to include stocks and fixed income instruments.

JPMorgan has expanded its blockchain offerings beyond TCN with the launch of the JPM Coin, which enables wholesale customers to make payments in USD and EUR.

Up until this past June, it has handled transactions totaling almost $300 billion since its founding. Additionally, the bank is exploring blockchain-based repo applications and is thinking about a digital deposit token to speed up international settlements.

Goldman Sachs Group Inc. isn’t the only major financial institution testing the waters in the blockchain and digital asset space. In November 2017, Goldman Sachs introduced its digital asset platform, which paves the way for customers to issue digital financial instruments in industries such as real estate.

The European Investment Bank has worked with financial institutions such as Banco Santander SA and Societe Generale SA to create a digital bond that will be issued on the blockchain. Franklin Templeton is just one of several asset management firms looking at using blockchain technology for fund transactions.

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