JPMorgan expects blockchain use in finance to grow as the crypto industry grows. The global investment bank says: “We want to make sure that we can not only support this, but also be ready to provide related services.”
JPMorgan Block Blockchain Projects
JPMorgan Chase & Co plans more use of blockchain in traditional finance and is preparing to offer related services, Bloomberg reported Thursday.
The global investment bank uses blockchain for collateral settlement, allowing its clients to use a wider range of assets as collateral and trade outside of market hours. The first such transaction took place on May 20.
Ben Challice, global head of trading services at JPMorgan, reportedly said:
What we have achieved is the instant transfer of collateral assets without friction.
In addition to derivatives trading, repo trading and securities lending, JPMorgan said it plans to expand tokenized collateral to include equities, fixed income securities and other types of assets.
Tyrone Lobban, lead blockchain launcher at JPMorgan and Onyx Digital Assets, explained that over time, the bank’s blockchain could potentially form a bridge between institutional investors and decentralized financial platforms (challenge) in the crypto economy.
He continued that as the crypto industry grows:
There will be more and more financial activities on the public blockchain, so we want to make sure that we can not only support it, but also be ready to provide related services.
In February, JP Morgan opened an “Onyx by JP Morgan” lounge in the metaverse. The bank estimated the Metaverse as “a trillion dollar opportunity in advertising, social commerce, digital events, hardware and developer/creator monetization opportunities.”
Jamie Dimon, CEO of JPMorgan, is skeptical about bitcoin and crypto, but is optimistic about blockchain. He said in April, “Decentralized finance and blockchain are real new technologies that can be deployed both publicly and privately, with or without a license.”
This week, strategists at JPMorgan released a bullish report on bitcoin and the cryptocurrency, saying there is a “significant advantage” in the price of BTC. The bank has also replaced real estate with cryptocurrencies as its “alternative preferred category.”
What do you think of JPMorgan’s blockchain projects? Let us know in the comments below.
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