JP Morgan Completes First Debut Tokenized Collateral Settlement Using Blockchain with BlackRock and Barclays

JPMorgan introduces the Tokenized Collateral Network (TCN) for blockchain-based asset collateral in settlements involving BlackRock and Barclays.
JP Morgan Completes First Debut Tokenized Collateral Settlement Using Blockchain with BlackRock and Barclays

On October 11, JP Morgan has completed collateral settlement using blockchain. For settlement operations involving BlackRock and Barclays, it has launched its first internal blockchain-based Tokenized Collateral Network (TCN).

Investors will be able to transfer ownership of collateral using the TCN application without having to move the assets themselves within the underlying ledgers. Using the Tonezined Collateral Network (TCN) and JP Morgan’s Onyx blockchain, which runs on Ethereum, BlackRock tokenized shares in one of its money market vehicles. The tokens were then delivered to Barclays Plc to utilize as collateral in an over-the-counter (OTC) derivatives trade.

However, compared to JP Morgan’s entire business, the Onyx blockchain network is still not widely used. Despite Wall Street companies seeking for ways to leverage blockchain technology, fewer companies are genuinely willing to use blockchain for their business. The Onyx blockchain network is not heavily utilized across JP Morgan’s whole business, nevertheless. Although fewer businesses are willing to test blockchain for their operations, Wall Street corporations are still looking for ways to employ the technology.

Tyrone Lobban, the head of JP Morgan’s Onyx digital assets, said, “Using the bank’s blockchain network Onyx Digital Assets, means the collateral moved virtually instantly, as opposed to over the course of a day. At scale, the system would boost efficiency by unlocking locked capital so that it could be utilized as collateral in ongoing transactions.

JP Morgan is quite an active in Blockchain space. It also Makes a Blockchain Move in June 2023.

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