Financial services giant JPMorgan says the latest Bitcoin (BTC) and crypto market meltdown may be fleeting. According to a new BNN Bloomberg report, JPMorgan analysts say the crypto market’s current deleveraging trend may not last much longer. The analysts also suggest that crypto firms going under shouldn’t be a surprise given the falling prices of […]
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Cryptocurrency-related lending has become a black smudge for the industry these days and according to a recent report, bitcoin’s low price has put billions in mining loans under stress. The report, which quotes the co-founder of mining company Luxor Technologies, Ethan Vera, says that roughly $4 billion in loans backed by crypto mining rigs are […]
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The Monetary Authority of Singapore (MAS) has partnered with major banks and financial services companies to explore the uses of asset tokenization and decentralized finance (defi). DBS Bank and JPMorgan will pilot the first project. Project Guardian Launched The Monetary Authority of Singapore (MAS), the country’s central bank, announced Tuesday that it has partnered with […]
JPMorgan CEO Jamie Dimon has warned that an economic “hurricane” is coming. “You better brace yourself,” he advised. “We just don’t know if it’s a minor one or Superstorm Sandy.” Jamie Dimon on the U.S. Economy and QT The CEO of JPMorgan & Chase, Jamie Dimon, warned about an incoming economic hurricane Wednesday at a […]
Financial services behemoth JPMorgan is contemplating tokenizing equities and other traditional securities using blockchain technology. According to a new report by Bloomberg, the banking giant is experimenting with blockchain technology by using it to transfer collateral settlements during the after-hours of the market. On May 20, JPMorgan transferred the token representation of $10 trillion to […]
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“What we’ve achieved is the friction-less transfer of collateral assets on an instantaneous basis,” stated JPMorgan’s global head of trading services Ben Challice.
Multinational investment bank JPMorgan Chase & Co is reportedly trialing the use of its own private blockchain for collateral settlements.
According to Bloomberg JPMorgan conducted a pilot transaction last Friday which saw two of its entities transfer a tokenized representation of Black Rock Inc. money market fund shares
A money market fund is a type of mutual fund that is considered as a low risk investment as it offers exposure to liquid and short term assets such as cash, cash equivalents and debt-securities with high credit ratings.
In terms of JPMorgan’s broader vision for its private blockchain, the bank said that it intends to enable investors to put forward a wide range of assets as collateral that can also be used outside of regular market hours. It pointed to equities and fixed income in particular.
“What we’ve achieved is the friction-less transfer of collateral assets on an instantaneous basis,” stated JPMorgan’s global head of trading services Ben Challice. BlackRock wasn’t a counterparty but it has been heavily involved in the initiative “since day one and are exploring use of this technology.”
JPMorgan has been actively involved with crypto and blockchain tech for quite some time now, and also founded Onyx Digital Assets (ODA) in late 2020. The project is described as a “blockchain-based network that enables the processing, recording and Delivery-versus-Payment (DVP) exchange of digital assets across asset classes.”
While it wasn’t specifically outlined if JPMorgan used the ODA in this instance, the network is geared up for the exchange of cash for different types of tokenized collateral, providing intraday liquidity, and offering access to the bank's digital payment infrastructure and token JPM Coin.
Tyrone Lobban, head of JPMorgan’s Blockchain Launch and the ODA said the bank is aiming to get ahead of a trend in which it sees a broader range of traditional financial services being offered via blockchain tech:
“There will be a growing set of financial activities that happen on the public blockchain, so we want to make sure that we are able to not only support that but also be ready to provide related-services.”
Earlier this week, European bank BNP Paribas conducted its first trade through the ODA to explore tokenized fixed income market trading.
Related: JPMorgan places BTC fair price at $38K, declares crypto a preferred alternative asset
Speaking on the move, BNP Paribas Global Markets managing director and head of US repo trading and sales Christopher Korpi, highlighted the significance of being able to streamline its processes via blockchain tech:
“Tokenized assets and Onyx Digital Assets will allow for precise intraday liquidity management. As such, they could be foundational to adding velocity to collateral, security settlement and ultimately decreasing systemic risks through reduction of intraday credit. Onyx Digital Assets will further reinforce the intraday fungibility of UST and USD Cash.”
Financial services giant JPMorgan says crypto assets have now surpassed real estate in terms of growth potential. According to a new report by Fortune, JPMorgan strategists guided by Nikolaos Panigirtzoglou say leading digital asset Bitcoin (BTC) has room to grow while also forecasting a slump in the real estate market due to rising mortgage interest […]
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On May 2, 2022, a report stemming from the broadcast television and radio network the National Broadcasting Company (NBC), 100,000 Cubans are leveraging crypto assets. The report says increased crypto usage is due to the fact that Cubans cannot use certain payment vehicles due to the sanctions placed on Cuba by the United States. 100,000 […]