JP Morgan Announces Prototype Blockchain Platform for Capital Markets

J.P. Morgan Chase & Co recently officially presented a new blockchain technology based platform which aims at cutting costs and enabling smoother securities transactions for capital markets. The platform was presented during NY’s Consensus conference, as reported by the Wall Street Journal.    

Executive director of J.P. Morgan’s Blockchain Center of Excellence, Christine Moy expressed an opinion that the blockchain technology has a great potential to be transformative in the infrastructure of capital markets.

Moy also commented that vast amounts of funds are transacted in capital markets and hence these involve multiple systems and information flows between many different stakeholders. The information flow takes place from issuers and asset managers to clearing houses and fund administrators. According to Moy, a major advantage of natively issuing financial instruments based on blockchaintechnology is the opportunity to share the mentioned infrastructure.      

Moy concluded that by using the new technology, it becomes possible to have a single and streamlined application. As a result, on the platform, each of the multiple entities will get the possibility to share info and participate in the system. As a result, the new system will be full of opportunities to provide measurable cost savings as well as overcoming issues of trust between parties.

J.P. Morgan co-president, Daniel Pinto earlier confirmed about the bank looking into the crypto space, highlighting own strong belief in the new technology to have a significant influence on the bank’s future. His main conclusion was that while he finds cryptocurrencies to be real, “those are still not in their current form”, hence tokenization of the traditional financial sector may see new iterations in the future.      

As it was reported earlier in May, J.P. Morgan is currently working on blockchain integration in its payment systems with the main aim of establishing more effective and transparent clearing and settlement systems

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