JPMorgan Launches Tokenized Collateral Network to Revolutionize Collateral Exchange

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JPMorgan Launches Tokenized Collateral Network to Revolutionize Collateral Exchange

JPMorgan, a leading bank, has introduced a blockchain-powered collateral settlement platform called the Tokenized Collateral Network (TCN). This in-house application allows traditional assets to be transformed into digital assets, leading to faster and more secure on-chain settlements. In a landmark transaction between BlackRock Inc. and Barclays Plc., TCN tokenized shares from a BlackRock money market fund which were then used as collateral for an over-the-counter derivatives trade with Barclays. This transaction showcases the potential of TCN to enhance the speed, efficiency, and security of collateral exchange in financial markets. The TCN also enables investors to utilize their assets as collateral without physically moving them. After successful internal testing, JPMorgan is now working on expanding its client base and transactions. The aim of TCN's launch is to streamline the traditional settlement process through blockchain technology, making it faster, more secure, and more efficient. JPMorgan's head of Onyx Digital Assets, Tyrone Lobban, highlights that TCN has the capacity to unlock capital and improve efficiency on a large scale. This blockchain-based platform gives clients access to intraday liquidity through secured repo transactions using tokenized collateral. JPMorgan has been actively embracing blockchain technology and crypto-related services, including settling trades with Indian banks using a blockchain-based solution. The bank also plans to introduce a Bitcoin fund for its affluent investors and private wealth clients.