As of yesterday, reported by PYMNTS, JPMorgan has just announced the first client trade on its tokenized collateral network, a permissioned version of the Ethereum blockchain. The trade was executed between BlackRock and Barclays and involved the exchange of tokenized US Treasury bonds.
The tokenized collateral network is a significant development in the evolution of digital assets, as it enables the efficient and secure transfer of collateral between financial institutions. The network is also expected to reduce the costs and risks associated with collateral management.
Ed Bond, JP Morgan’s head of trading services, said: “The Tokenized Collateral Network is a significant investment in the future of collateral markets. This first transaction with BlackRock and Barclays demonstrates the power of tokenized assets, particularly in a collateral setting.”
The tokenized collateral network is part of JPMorgan’s broader effort to develop and deploy blockchain-based solutions for the financial industry. The bank has already processed close to $700 billion in short-term loan transactions via Onyx, its blockchain platform.
The first client trade on JPMorgan’s tokenized collateral network is a major milestone in the development of digital assets and blockchain technology for the financial industry. The network has the potential to revolutionize the way collateral is managed and exchanged, making the financial system more efficient and resilient.
View the original article from PYMNTS here.