JPMorgan Partners With Digital Asset for Blockchain Trial

JPMorgan has teamed up with Digital Asset on a trial blockchain initiative that aims to make the trading process more efficient and cost effective.

AccessTimeIconFeb 1, 2016 at 2:01 p.m. UTC
Updated Aug 18, 2021 at 4:32 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

JPMorgan Chase has teamed up with Digital Asset Holdings on a trial blockchain initiative that aims to make the trading process more efficient and cost effective.

As reported in the FT, several uses of the technology are to be examined, including addressing liquidity mismatches in loan funds.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • These funds give investors quick access to money, although the underlying assets often take far longer to sell due to a complex manual process that must deal with multiple parties.

    "To sell a loan is a very cumbersome, time-consuming process; settlement can take weeks," Daniel Pinto, CEO at JPMorgan's corporate and investment bank, told the FT. Using the blockchain makes sense, since it’s easier and faster, and produces fewer errors, he said.

    New York-based Digital Asset seeks to use private or permissioned blockchain technology to streamline syndicated loans, US Treasury repo, foreign exchange, securities settlement, and derivatives.

    Led by Blythe Masters, JPMorgan's former head of commodities, the firm recently raised at least $50m from 13 major financial institutions, including Citi, CME Ventures and Santander InnoVentures.

    Masters told the FT that speeding up settlement would lead to "reduced capital requirements, lower operational costs and an improved client experience".

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.