JPMorgan expects the use of the blockchain in finance to increase as the crypto sector grows. The Global Investment Bank says: “We want to make sure that we are able not only to support this, but also to be ready to provide related services.
JPMorgan’s blockchain plans
JPMorgan Chase & Co plans to increase the use of blockchain in traditional finance and is preparing to offer related services, Bloomberg reported on Thursday.
The Global Investment Bank uses a blockchain to settle collateral, allowing its clients to use a wider range of assets as collateral and trade outside market hours. The first such transaction was made on May 20.
Ben Challis, JPMorgan’s global commercial services manager, was quoted as saying:
What we have achieved is the instantaneous transfer of collateral without friction.
In addition to derivatives trading, repo trading and securities issuance, JPMorgan said it plans to expand token collateral to include stocks, fixed income and other assets.
Tyrone Loban, head of JPMorgan’s Blockchain Launch and Onyx Digital Assets, explained that over time, the bank’s blockchain could potentially be a bridge connecting institutional investors with decentralized financial (defi) platforms in the crypto economy.
He continued that with the growth of the crypto sector:
There will be a growing range of financial activities that take place in the public blockchain, so we want to make sure that we are able not only to maintain it, but also to be ready to provide related services.
In February, JP Morgan opened the Onyx by JP Morgan showroom in the metaverse. The bank described the metauniverse as “an opportunity for trillions of dollars in advertising, social commerce, digital events, hardware and monetization of developers / creators.”
JPMorgan CEO Jamie Dimon, while skeptical of bitcoin and cryptocurrency, is set on a blockchain. In April, he said: “Decentralized finance and the blockchain are real, new technologies that can be implemented both publicly and privately, with or without permission.
This week, JPMorgan strategists published an upward report on bitcoin and cryptocurrency, saying there was a “significant increase” in the price of BTC. The bank also replaced real estate with cryptocurrencies as its “preferred alternative asset class”.
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