● 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.