
JPMorgan Chase & Co. JPM has launched its first collateral settlement using blockchain technology.
The bank's Tokenized Collateral Network facilitated BlackRock Inc. BLK in converting shares from one of its money market funds into digital tokens.
The tokens were subsequently transferred to Barclays Plc BCS, which is the parent company of Onyx Digital Assets, according to Bloomberg, who said they were used to finance an over-the-counter derivatives deal between the two companies.
As the crypto industry evolves, such groundbreaking applications of blockchain technology are expected to be a focal point at the upcoming Benzinga's Future of Digital Assets conference on Nov. 14 in New York City. The event aims to explore the transformative potential of digital currencies and the innovations that drive the industry.
While blockchain has been on the radar of Wall Street for more than a decade, its commercial application remains limited, causing some to question its practicality in the financial sector.
Lobban said the Onyx Digital Assets network ensures almost immediate collateral movement, in contrast to traditional methods that could take a day.
This efficiency could unlock capital for use as collateral in multiple transactions.
JPMorgan's trading services chief, Ed Bond, revealed plans to expand the range of assets usable as collateral, encompassing equities and fixed income.
Beyond TCN, JPMorgan has launched the JPM Coin, a blockchain system that facilitates payments for wholesale clients in dollars and euros.
The company has been processing transactions worth about $300 billion through its inception to June of this year.
The bank is also looking into blockchain-based repo applications, and is considering a digital deposit token to speed up cross-border settlements.
Goldman Sachs Group Inc. GS, among other financial institutions, are also dipping their toes into blockchain and digital assets. Goldman Sachs' digital asset platform was launched in November, enabling clients to issue digital financial securities in industries such as real estate.
A blockchain-based digital bond has been developed by firms like Banco Santander SA and Societe Generale SA. Franklin Templeton, an asset management company, is exploring blockchain-based transaction methods for their funds.
At Benzinga's exclusive event, Future of Digital Assets, meet and engage with transformative Digital Asset and Crypto business leaders and investors.