What Do McDonald’s Burgers, JP Morgan, and Blockchain Technology Have in Common?
TL;DR
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A few of JPMorgan’s methods are altering – however the finish result’s largely the identical with the JPMorgan’s Tokenized Collateral Community (TCN), which has huge ‘McDonald’s Speedee Service System’ vibes.
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Monetary corporations are nonetheless posting shares/shares as collateral. However the technique of doing so is now much more environment friendly, resulting in a drastic discount in value and time.
Full Story
Earlier than Wealthy and Maurice McDonald, there was no such factor as ‘quick’ meals.
The genius of the McDonald brothers was how they designed their ‘Speedee Service System,’ which made the preparation of every burger sooner and cheaper.
…certain, the meals itself was largely unchanged by the system. However the course of of making it turned far extra environment friendly.
One thing related is going on over at JPMorgan, in that a few of its methods are altering – however the finish result’s largely the identical.
The change is available in JPMorgan’s Tokenized Collateral Community (TCN), which has huge ‘McDonald’s Speedee Service System’ vibes.
This is the essential gist of it:
When taking out loans, it is advisable to submit collateral (which is wealthy particular person speak for ‘put down a deposit’).
And on the earth of conventional finance, huge corporations will typically use shares or shares as collateral, as a substitute of money.
…solely downside is, the methods supporting the switch of shares/shares aren’t precisely environment friendly.
What JPMorgan’s Tokenized Collateral Community lets these monetary corporations do is:
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Lock their shares/shares up.
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Get blockchain primarily based tokens in return (the place 1 token = 1 share).
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Submit these ‘tokenized’ shares as collateral, utilizing blockchain expertise (which is WAY sooner and WAY cheaper than the previous system).
So, very like a McDonald’s burger earlier than/after the ‘Speedee Service System’ was carried out: the top outcome is similar, however the course of is improved.
Monetary corporations are nonetheless posting shares/shares as collateral.
However the technique of doing so is now much more environment friendly, resulting in a drastic discount in value and time.
Fairly neat how blockchain is seeping into even the stodgiest elements of the standard monetary world, no?
