Bloomberg Law
May 26, 2022, 12:30 PM

JPMorgan Finds New Use for Blockchain in Collateral Settlement

Yueqi Yang
Yueqi Yang
Bloomberg News

JPMorgan Chase & Co is using blockchain for collateral settlements, the latest Wall Street experimentation with the technology in the trading of traditional financial assets.

The bank’s first such transaction came on May 20, when two of its entities transferred the token representation of BlackRock Inc. money market fund shares as collateral on its private blockchain. The effort will allow investors to pledge a wider range of assets as collateral and use them outside of market operating hours, according to New York-based JPMorgan.

“What we’ve achieved is the friction-less transfer of collateral assets on an instantaneous basis,” Ben Challice, ...

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