On October 11, JPMorgan has completed collateral settlement using blockchain for its clients. It has brought out its first in-house blockchain-based Tokenized Collateral Network (TCN), for settlement transactions involving BlackRock and Barclays.
With the TCN application, investors will be able to use assets as collateral, transferring ownership of collateral without having to move the assets within the underlying ledgers.
BlackRock tokenized shares in one of its money market funds using JPMorgan’s Etherreu-based Onyx blockchain and the bank’s Tonezined Collateral Network (TCN). After that, the tokens were given to Barclays Plc to use as collateral in an over-the-counter (OTC) derivatives trade.
However, the Onyx blockchain network’s use is still small compared to JPMorgan’s overall business. Despite Wall Street firms looking for ways to use blockchain technology, less number of of firms are actually agreeing to try blockchain for their operations.
However, for JPMorgan’s whole business, the Onyx blockchain network is not very used. Though fewer companies are agreeing to test blockchain for their operations, Wall Street firms are still searching for ways to use the technology.
The head of Onyx digital assets at JPMorgan, Tyrone Lobban, said, “Using the bank’s blockchain network Onyx Digital Assets, meant the collateral moved almost instantaneously, compared with over the course of a day. At scale, the technology would increase efficiency by freeing up locked capital so that it could be used as collateral in ongoing transactions.”
JP Morgan is quite an active in crypto space. It has also filed trademark application for a new crypto wallet called JP Morgan Wallet in November.
