JPMorgan Introduced Tokenized BlackRock Shares As Collateral For Barclays

JPMorgan has accomplished its first blockchain-based collateral settlement transaction involving BlackRock and Barclays, the US banking large stated on Wednesday. JPMorgan’s Ethereum-based Onyx blockchain and the financial institution’s tokenized collateral community (TCN) had been utilized by BlackRock to tokenize shares of one in all its cash market funds (MMFs). The tokens had been then transferred to Barclays Plc as collateral in over-the-counter derivatives buying and selling.

Tokenization of conventional monetary property is essential for banks, and it’s an space the place JPMorgan is main the best way. Tokenization occurred inside minutes due to a connection between the fund’s switch agent and TCN, JPMorgan stated in a press launch. The switch between Blackrock and Barclays was virtually instantaneous and represents the primary time for BlackRock, JPMorgan and Barclays that MMF shares are used as collateral between bilateral derivatives counterparties, it stated.

The pinnacle of Onyx Digital Property at JPMorgan famous that Onyx Digital Property already permits shoppers to entry intraday liquidity via repo transactions. Now, with the launch of TCN, shoppers can additional profit from their MMF funding by posting tokenized MMF shares as collateral – a sooner and less expensive solution to meet margin necessities.

Picture: ABC Information