JPMorgan Initiates First Collateral Settlement Using Digital Tokens, Blockchain
Portfolio Pulse from Murtuza Merchant
JPMorgan Chase & Co. has initiated its first collateral settlement using blockchain technology. The bank's Tokenized Collateral Network (TCN) facilitated BlackRock Inc. in converting shares from one of its money market funds into digital tokens. These tokens were then transferred to Barclays Plc as collateral for an over-the-counter derivatives deal. JPMorgan's Onyx Digital Assets network ensures almost immediate collateral movement, in contrast to traditional methods that could take a day. Other financial giants, including Goldman Sachs Group Inc., are also venturing into blockchain and digital assets.
October 11, 2023 | 1:01 pm
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Barclays Plc received digital tokens as collateral for an over-the-counter derivatives deal.
The receipt of digital tokens as collateral could potentially increase the liquidity and efficiency of Barclays' derivatives deals, which could boost its financial performance.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
BlackRock Inc. converted shares from one of its money market funds into digital tokens using JPMorgan's Tokenized Collateral Network.
The conversion of shares into digital tokens could potentially increase the liquidity and efficiency of BlackRock's money market funds, which could boost its financial performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Goldman Sachs Group Inc. is also venturing into blockchain and digital assets.
Goldman Sachs' venture into blockchain and digital assets could potentially increase its operational efficiency and open up new revenue streams, which could boost its financial performance.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
JPMorgan has initiated its first collateral settlement using blockchain technology, which could increase efficiency and unlock capital for use as collateral in successive transactions.
The use of blockchain technology for collateral settlement could increase efficiency and unlock capital for use as collateral in successive transactions, which could potentially boost JPMorgan's financial performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100