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JPMorgan is using blockchain technology for collateral settlements, according to new reports from Bloomberg<\/em><\/a>.<\/p>\n In a pilot blockchain transaction, JPMorgan Chase & Co. transferred tokenized money market fund shares (a type of mutual fund) as collateral on Friday, May 20.<\/p>\n The transaction involved assets from BlackRock, the world\u2019s largest asset manager. Blackrock was not directly involved in the transaction as a counterparty. However, Blackrock has been \u201cheavily involved since Day One\u201d and is still exploring blockchain technology according to Ben Challice, JPMorgan\u2019s global head of trading services.<\/p>\n The innovation will allow investors to use a wider variety of assets as collateral and carry out transactions outside of market hours. Challice noted that the transaction accomplished a \u201cfriction-less transfer of collateral assets on an instantaneous basis.\u201d<\/p>\n JP Morgan also plans to expand tokenized collateral to include equities and fixed income, according to today\u2019s report.<\/p>\n JP Morgan has been heavily involved in blockchain over the past several years and has created various products.<\/p>\n It launched Quorum, an enterprise version of Ethereum in 2016. Quorum was acquired by ConsenSys in August 2020<\/a>. Following that sale, JP Morgan launched a new internal blockchain product called Onyx and its own internal stablecoin in October 2020<\/a>.<\/p>\n JPMorgan also began to use blockchain for transactions related to repurchase borrowing in 2020. According to Bloomberg, more than $300 billion of value has been handled through those transactions, some of which involved Goldman Sachs.<\/p>\n Despite the company\u2019s recent willingness to embrace blockchain technology for institutional purposes, it has also become infamous for CEO Jamie Dimon\u2019s long-standing hostility toward Bitcoin<\/a>. Dimon has at times called Bitcoin a \u201cfraud\u201d and \u201cworthless\u201d, but more recently has conceded that there is client demand for it.<\/p>\n Yesterday, an investor note from JPMorgan placed Bitcoin\u2019s fair value at $38,000\u2014higher than its current value of $29,300.<\/p>\n Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.<\/em><\/p>\nTransaction Involved BlackRock Assets<\/h2>\n
JPMorgan\u2019s Previous Blockchain Efforts<\/h2>\n
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