Revolutionary Blockchain Transaction: JPMorgan Tokenizes Collateral on Ethereum
In a groundbreaking move, leading US banking giant JPMorgan announced on Wednesday its first live settlement transaction on its Ethereum-based blockchain Onyx. The transaction highlighted the bank’s Tokenized Collateral Network (TCN), a platform used by BlackRock to tokenize its money market funds. These newly created tokens were then transferred to Barclays Plc as collateral for an over-the-counter (OTC) derivative transaction.
Instant Transfers and Operational Efficiency
Highlighting the efficiency of the new system, JPMorgan stated in its press release how tokenization, through the connectivity between the fund transfer agent and TCN, was completed within minutes.
Moving forward with the TCN launch, clients can now benefit from additional utility of their MMF investments by depositing tokenized MMF shares as collateral – a faster and more cost-effective way to meet margin requirements.
Tyrone Lobban, Head of Onyx Digital Assets at JPMorgan, emphasized the intrinsic benefits of the new system. Tom McGrath, Deputy COO of the Treasury Management Group at BlackRock, underscored the significance of the process.