JPMorgan launches token platform, BlackRock among key clients: Report
US banking giant JPMorgan unveiled its Tokenized Collateral Network (TCN), a blockchain-based tokenization application, on October 11, according to Bloomberg. TCN has made its first trade for asset management giant BlackRock.
The Tokenized Securities Network is an application that allows investors to use assets as collateral. Using blockchain technology, investors can transfer ownership of mortgages without moving assets in mortgage ledgers.
In the first public joint venture between JPMorgan and BlackRock, TCN converted shares of a money market fund into digital tokens, which were then transferred to Barclays Bank as security for an over-the-counter derivatives exchange between the two companies.
TCN's first internal trial was conducted by JPMorgan in May 2022, and with a pipeline of other clients and transactions, TCN is now live. The JP Morgan Tokenization Network was launched to streamline and expand the process of settling traditional settlements on the blockchain. Using decentralized technology has made the process faster, safer and more efficient.
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Tyrone Loban, head of Onyx Digital Assets at JPMorgan, said the new TCN platform unlocks locked-up capital and allows it to be used as collateral in ongoing transactions, while the technology increases efficiency at scale. The platform enables the creation, transfer and modification of custom assets. The token platform allows immediate collateral movement, unlike other methods previously used.
The blockchain platform creates a way for customers to access internet liquidity through secure repo transactions using tokenized collateral instead of relying on expensive unsecured lines of credit. External clients who agree on blockchain trades have their own nodes to settle trades and access other reports.
US banking has come a long way from its early days of criticism of the decentralized world and is now actively involved in testing and launching various blockchain and crypto-based services amid growing demand. The bank earlier this year used a blockchain-based solution to transact with Indian banks in June.
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