JPMorgan has started using blockchain technology for collateral settlements.
In a pilot blockchain transaction,
On Friday, May 20, JPMorgan Chase & Co. transferred tokenized money market fund shares (a type of mutual fund) as collateral in a pilot blockchain transaction.
The transaction involved assets from BlackRock, the world’s largest asset manager.
The innovation will allow investors to use a wider variety of assets as collateral and carry out transactions outside of market hours.
JP Morgan also plans to expand tokenized collateral to include equities and fixed income.
JP Morgan has been heavily involved in blockchain over the past several years and has created various products.
It launched Quorum, an enterprise version of Ethereum in 2016. Quorum was acquired by ConsenSys in August 2020. Following that sale, JP Morgan launched a new internal blockchain product called Onyx and its own internal stablecoin in October 2020.
