{"id":28100,"date":"2022-05-27T03:12:20","date_gmt":"2022-05-27T07:12:20","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=28100"},"modified":"2022-05-27T03:12:30","modified_gmt":"2022-05-27T07:12:30","slug":"jpmorgan-conducts-pilot-trials-on-its-blockchain-for-collateral-settlement","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/jpmorgan-conducts-pilot-trials-on-its-blockchain-for-collateral-settlement\/","title":{"rendered":"JPMorgan conducts pilot trials on its blockchain for collateral settlement"},"content":{"rendered":"\n
JPMorgan Chase & Co<\/a>, a multinational investment bank, is apparently testing the use of its own private blockchain for collateral settlements.<\/h5>\n\n\n\n
\"JPMorgan
JPMorgan conducts pilot trials on its blockchain for collateral settlement <\/figcaption><\/figure>\n\n\n\n

Bloomberg reports that JPMorgan performed a test transaction last Friday in which two of its businesses transferred a tokenized version of Black Rock Inc. money market fund shares.<\/p>\n\n\n\n

A money market fund is a form of mutual fund that exposes liquid and short-term assets \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>such as cash, cash equivalents, and debt securities with good credit ratings, making it a low-risk investment.<\/p>\n\n\n\n

According to the bank, JPMorgan's more enormous ambition for its private blockchain is to allow investors to submit a wide range of assets as collateral, which may be used outside of usual market hours. It specifically mentioned equities and fixed income.<\/p>\n\n\n\n

\u201cWhat we\u2019ve achieved is the friction-less transfer of collateral assets on an instantaneous basis,\u201d stated JPMorgan\u2019s global head of trading services Ben Challice. BlackRock wasn\u2019t a counterparty but it has been heavily involved in the initiative \u201csince day one and are exploring use of this technology.\u201d<\/p><\/blockquote>\n\n\n\n

JPMorgan has been interested in crypto and blockchain technology <\/a>for a long time, and in late 2020, it launched Onyx Digital Assets (ODA). The project is a “blockchain-based network that facilitates the processing, recording, and Delivery-versus-Payment (DVP) exchange of digital assets across asset classes,” according to the description.<\/p>\n\n\n\n

While it's unclear whether JPMorgan used the ODA in this case, the network is designed to swap cash for various types of tokenized collateral, provide intraday liquidity, and provide access to the bank's digital payment infrastructure and token JPM Coin.<\/p>\n\n\n\n

Tyrone Lobban, the head of JPMorgan's Blockchain Launch and the ODA, said the bank is attempting to anticipate a trend in which a greater range of traditional financial services<\/a> will be supplied via blockchain technology:<\/p>\n\n\n\n