JPMorgan has unveiled a tokenization platform

JPMorgan has unveiled a tokenization platform

● JPMorgan Chase & Co. has successfully launched its first-ever collateral settlement on Tokenized Collateral Network (TCN).

● The milestone achievement involved BlackRock-Barclays as the first users of the blockchain-based collateral settlement.

● BlackRock utilized the system to tokenize shares in one of its money market funds, which were then transferred to Barclays to support an over-the-counter derivatives trade.

● TCN, launched in 2021, aims to facilitate collateral transfers and reduce fraud and errors.

● JPMorgan also plans to diversify the types of assets that can be used as collateral, providing institutions with greater flexibility.

● The bank’s progressive outlook aligns with the broader trend in the financial industry, where institutions are exploring blockchain’s transformative capabilities.

● JPMorgan is also building a new digital currency that will operate similarly to stablecoins and CBDCs, with plans to launch it for enterprise-level customers in 2024.

● The bank has previously launched JPM Coin, a stablecoin-focused initiative used for cross-border transactions and liquidity management.

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