JPMorgan considers the ability to make loan settlements using blockchain
For several years, Wall Street has been exploring the possibilities of using blockchain in the banking business. Bankers are interested in operations such as interbank payments, mortgage loans, and cross-border transactions.
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One of the largest investment banks, JPMorgan, has also actively explored blockchain use in banking operations. Bloomberg reports it. Now, several test transactions have already been carried out. On May 20, the bank successfully transferred the tokenized shares of the BlackRock fund used as collateral.
When this system is put into general operation, collateral assets can be transferred instantly without difficulties and delays. This will greatly speed up banking processes and open the opportunity for investors to operate with a larger list of assets for collateral. They can be used during non-working hours of the market,
the bank said.
The bank’s management is confident that this blockchain-based system will be very useful when it comes not only to securities lending but also to repo or derivatives trading. The bank also noted that they intend to expand this area by including more types of assets in it.
The potential of the blockchain is such that over time it can become a bridge between institutional investors and decentralized platforms in the crypto economy. The crypto sector will grow, and the set of financial transactions on the public blockchain will grow as it develops. Our task is to make sure that we can not only support this but also be able to provide related services,
said Tyrone Lobban, head of JPMorgan Blockchain Launch and Onyx Digital Assets.
It is worth noting that the bank has been using blockchain for repo trading for two years now and has processed $300 million worth of transactions since 2020.
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