Last Friday, the investment company finished its trial deal. As per recent Bloomberg reports, JPMorgan is adopting blockchain technology for collateral settlements. This is the most recent Wall Street engagement with technology in traditional financial commodity dealing.
The bank’s first such deal happens on May 20. According to JPMorgan, the move will help shareholders to commit a broader range of assets as security and utilize them beyond market working hours.
The Acquisition Includes BlackRock Assets
JPMorgan Chase & Co. trades tokenized currency market fund assets as protection in a prototype blockchain deal.
BlackRock, the nation’s biggest asset management, was participating in the acquisition. As a participant, Blackrock wasn’t really actively engaging in the agreement. As per Ben Challice, JPMorgan’s general manager of trading services, Blackrock has indeed been deeply engaging since day one and is still studying blockchain technology.
The advancement will enable investors to utilize a broader range of assets as collateral and conduct transactions outside of market hours. According to Challice, the transaction resulted in a frictionless transfer of collateral assets on an immediate basis.
According to today’s news, JP Morgan also intends to expand tokenized collateral to encompass stocks and fixed income.
Past Blockchain Attempts by JPMorgan
JP Morgan has always had a high interest in blockchain for some years and has developed a number of products. In 2016, it released Quorum, a corporate edition of Ethereum. ConsenSys purchased Quorum in August 2020.
JPMorgan’s Quorum system is being replaced by the Ethereum-focused ConsenSys. Quorum, an Ethereum permissioned fork, will serve as the foundation for its corporate blockchain ambitions. Following the sale, JP Morgan unveiled Onyx, a new internal blockchain product as well as its own internal stablecoin, in October 2020.
Presently, Onyx manages JPMorgan’s Interbank Information Network, which they call Liink.
This blockchain solution is only for legal adherence, bank detail management, and payment digitization. They might also be using it to correct financial mistakes or to remove paper checks, for illustration. In another sense, the system is primarily concerned with banking-related data rather than virtual currencies.
Using Blockchain Technology for a Reason
Onyx’s CEO will then be former JP Morgan executive Omar Farooq. The company has over 100 employees and is currently partnering with over 25 prominent banks and over 400 institutions.
In 2020, they also started using blockchain technology for buyback lending operations. As per Bloomberg, the deals, some of which involve Goldman Sachs, managed more than $300 billion in valuation.
Notwithstanding the company’s apparent readiness to adopt blockchain technology for institutional reasons, CEO Jamie Dimon’s long-standing animosity toward Bitcoin has made it renowned. Dimon has labeled Bitcoin a scam and valueless at times. However, he has since admitted that there is a customer desire for it.
JPMorgan’s investment report yesterday set Bitcoin’s fair market value at $38,000, which is greater than its present value of $29,300.
