JPMorgan believes that the use of blockchain in finance will increase with the growth of crypto. The global investment bank says, “We want to make sure that we are able to not only support that but also be ready to provide related services.”
JPMorgan’s Blockchain Plans
JPMorgan Chase & Co foresees increased blockchain usage in traditional finance and is getting ready to offer related services, Bloomberg reported Thursday.
A blockchain has been used by the global investment bank to facilitate collateral settlements. Clients can use more assets for collateral, and also trade beyond market opening hours. This was the first of these transactions, which took place May 20.
Ben Challice, JPMorgan’s global head of trading services, was quoted as saying:
What we’ve achieved is the friction-less transfer of collateral assets on an instantaneous basis.
JPMorgan stated that it will expand tokenized collaterals beyond derivatives trading and repo trading and securities lending. It also plans to add equities and fixed income to its portfolio.
Tyrone Lobban, head of JPMorgan’s Blockchain Launch and Onyx Digital Assets, explained that over time the bank’s blockchain could potentially be a bridge connecting institutional investors with decentralized finance (defi) platforms in the crypto economy.
He said that the cryptocurrency sector is growing:
We expect to see a greater number of financial transactions on the public blockchain. Therefore, we need to ensure that we can not only provide support for these activities but also that related services are available.
In February, JP Morgan opened an “Onyx by J.P. Morgan” lounge in the metaverse. The bank estimated the metaverse to be “a trillion-dollar revenue opportunity across advertising, social commerce, digital events, hardware, and developer/creator monetization.”
Jamie Dimon of JPMorgan is skeptical about bitcoin and crypto but is bullish on blockchain. He said in April: “Decentralized finance and blockchain are real, new technologies that can be deployed in both public and private fashion, permissioned or not.”
This week, JPMorgan’s strategists published a bullish report on bitcoin and cryptocurrency, stating that there is “significant upside” to the price of BTC. The bank has also replaced real estate with cryptocurrencies as its “preferred alternative asset class.”
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