JPMorgan’s blockchain-based collateral settlement application, Tokenized Collateral Network (TCN), is now operational. It was started after completing the first transaction involving BlackRock and Barclays clients.
According to information from Bloomberg, BlackRock used the application to convert shares in one of its money market funds into digital tokens. As a result, they were transferred to Barclays as collateral for a derivatives trade.
The publication highlighted an interview with Tyrone Lobban, head of Onyx Digital Assets at JPMorgan. He reported that the new feature helps in moving collateral almost instantly.
The head of Onyx Digital Assets stated that, in the case of a larger-scale implementation, the application could present an increase in efficiency, which would make blocked capital available for use as collateral in ongoing transactions.
Internally, JPMorgan carried out the TCN test for the first time more than a year ago, specifically in May of last year. The test was marked by the transfer of tokenized representations of shares from a BlackRock money market fund. The share would serve as collateral on the Onyx Digital Assets platform.
JPMorgan Prepares its Blockchain Token to Revolutionize International Payments
In the frantic evolution of the world of cryptocurrencies, JPMorgan, one of the most prestigious banks in the United States, is preparing to make a presence with its cryptocurrency. Following the trend of integrating blockchain technology into the banking sector, the giant has plans to launch a deposit token based on this technology, focusing on international payments and settlements.
This is not JPMorgan’s first foray into the crypto space. Many will remember JPM Coin, a system that allowed the transfer of dollars and euros within the bank’s own infrastructure. Since its launch in 2019, JPM Coin has processed impressive transactions, reaching the mark of around 300 billion dollars.
The JPM deposit token promises to be even more revolutionary. By utilizing blockchain technology – famous for its ability to record and verify transactions without intermediaries – JPMorgan aspires to not only speed up cross-border payments, but also reduce the costs associated with them. This is mainly due to the elimination of the need for intermediary agents, such as clearing houses and other banks.
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