JPMorgan Bank used Blockchain technology to tokenize stocks and securities – DiarioBitcoin

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JPMorgan Bank used Blockchain technology to tokenize stocks and securities - DiarioBitcoin For Angel Di Matteo @shadowargel

The test of JPMorgan with blockchain They allowed the entity to process transactions of assets and tokenized securities outside the closing hours of the stock markets, which opens the door to think of many other commercial opportunities.


  • JPMorgan tokenized stocks and shares.
  • Made test transfers outside of business hours.
  • The bench tests use cases for blockchain.

The high-profile US-based international bank, JPMorgan, could be contemplating the possibility of employing technology blockchain to tokenize stocks and other securities from traditional sectors.

JPMorgan Test blockchain for the tokenization of shares and securities

The information was published by the news agency Bloomberg, which indicated that the team of JPMorgan I would be doing tests with technology blockchain to transfer collateral settlements, which would take place after the closing hours of the main markets.

In this regard, the report reads as follows:

“The bank’s first such transaction occurred on May 20, when two of its entities transferred token representation of BlackRock Inc. money market fund shares as collateral on its private Blockchain network. The effort will allow investors to pledge a broader range of assets as collateral and use them outside of market operating hours.”

In this regard, the head of commercial services for JPMorgan, Ben Challice indicated that this allowed the entity he represents to instantly move a collateral asset without any problem:

“What we have achieved is the transfer without any inconvenience of collateral assets instantly.”

In addition to the above, Challice also revealed that black rock is exploring the use of blockchain for similar purposes, so the prestigious entity is also carrying out its tests in this regard.

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Good prospects for this technology

While this is an important announcement by JPMorgan, the truth is that the entity has already spent quite some time exploring the usefulness of blockchain for its operating model, which it has said openly and about which they are particularly optimistic.

Among the short-term plans, JPMorgan He says he plans to increase the use of guaranteed settlements for the coming months, which would be incorporated into transactions with derivatives, securities loans and other assets, with the prospect of including even more as they go forward.

Regarding cryptocurrencies, the bank has had an ambivalent position that is currently leaning “in favor” of these assets. Earlier this week, JPMorgan indicated in a statement that digital currencies would be replacing real estate as the preferred alternative assets for investors, reflecting a greater interest in their acquisition and commercialization in the main markets.

Previously, JPMorgan also revealed that there was a high demand for Bitcoin and other cryptocurrencies among its users, something with which the director of the entity does not seem to agree very much, since in the face of this Jamie Dimon assured that in a personal capacity he does not consider that there is value in cryptocurrencies, but that he is not the one to tell people what to invest in and what not to.

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Source: dailyhodl, Bloomberg

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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