JPMorgan Start Using Blockchain As Settlement For Collateral

Start Trading

Various institutions continue to integrate blockchain technology into their operations. This integration is due to the enormous benefits such as speed and security that the new tech offers. 

Recently, JPMorgan has joined the trend. The company now uses blockchain tech for collateral settlement. This will allow investors to use various assets as collateral. 

BlackRock Assets Used For Pilot Testing 

On the 20th of May, JPMorgan sent a mutual fund (tokenized shares) as collateral. The transaction was to test the blockchain tech. The transaction made use of BlackRock, the world’s biggest asset manager. 

JPMorgan’s head of trading, Ben Challice, noted that BlackRock has been exploring blockchain tech. BlackRock has been working together with JPMorgan on blockchain development. 

The recent development will enable clients to use various assets as a form of collateral. Also, they will be able to conduct transactions outside market hours. Challice stated the transaction was swift, and collateral assets were sent almost immediately. 

The company plans to extend its tokenized collateral option. The report states that it will add fixed income and equities to it.

JPMorgan’s Past Effort For Blockchain Development 

The investment firm has been at the forefront of blockchain development over the years. It has released several blockchain products to enhance its services to clients.

In 2016, the company launched Quorum. The Quorum was a version of Ethereum. Unfortunately, JPMorgan sold it to ConsenSys in 2020. 

After the sale of Quorum, the company created another blockchain service dubbed Onyx. It also created an internal stablecoin, all in 2020.

In 2020, the investment bank started using blockchain tech for transactions such as repurchase borrowing. As per Bloomberg’s report, such transactions have handled over $300 billion. Some of them even involved a famous investment firm, Goldman Sachs. 

Although the company has willingly accepted blockchain development, Bitcoin is still rejected. The company has used blockchain technology for various institutional projects. 

However, Jamie Dimon, JPMorgan’s CEO, remains hostile toward BTC. In the past, the CEO referred to Bitcoin as worthless and fraudulent. Yet, several clients in the investment bank are willing to invest in Bitcoin. 

On the 26th of May, an investor from JPMorgan released a note. The investor projected the value of Bitcoin to reach $38,000. Presently, Bitcoin is trading at $29,210.

Presently, various financial institutions and investment banks have adopted crypto. This was after several clients showed interest in the trending digital asset. However, Dimon did not state if JPMorgan would offer a crypto investment service soon.

Start Trading

Leave a Comment

1 Institute Trade Blog | All Rights Reserved 2022 | Disclaimer | ✉ Contact