US investment bank JPMorgan has launched Tokenized Collateral Network (TCN), a collateral tokenization platform powered by Onyx.
The Tokenized Collateral Network platform provides services to tokenize, manage and use digital assets as collateral, giving the bank's institutional clients the ability to leverage assets that were not previously available for use as collateral within the Onyx digital asset ecosystem.
Using blockchain technology, Tokenized Collateral Network increases the transparency of collateral ownership, automates the reconciliation process, improves mobility and ensures the transfer of collateral ownership in real time, reducing costs and settlement times. .
BlackRock digitizes the shares of one of its funds using TCN
Cryptocurrency investor Scott Melker highlighted that JPMorgan's collateral tokenization platform recently settled its first deal with BlackRock, tokenizing shares of one of the asset manager's money market funds that were transferred to bank Barclays PLC as collateral for a exchange of over-the-counter derivatives between both institutions.
The inaugural operation of the platform was carried out successfully, demonstrating the usefulness of the blockchain to leverage traditional assets as collateral in a more efficient way.
Regarding this operation, the leader of Onyx's digital assets initiative, Tyrone Lobban, highlighted the potential that blockchain technology has to unlock large amounts of capital tied up in the markets.
Thanks to the unique attributes of blockchain, the OTC derivatives trade between BlackRock and Barclays PLC was completed almost instantaneously, which is a significant improvement and acceleration over the duration of these exchange transactions using traditional processes.
JPMorgan continues to integrate blockchain into its business operations
The launch of the Tokenized Collateral Network marks another momentous moment in the history of JPMorgan, which has gone from being an institution skeptical of crypto industry innovation to one that currently supports its growth and development.
In addition to having its own blockchain network, JPMorgan has embarked on other projects related to the blockchain and cryptoassets. For example, you have used Polygon Network's scalable solution to settle a transaction between currencies which involved the Central Bank of Singapore and the Central Bank of Japan. Likewise, it is exploring the potential of the decentralized web, Web3, to create a digital wallet that allows users to easily and intuitively manage their digital identities and assets.
On the other hand, the director of JPMorgan's trading services, Ed Bond, said that the tokenization of assets in the Tokenized Collateral Network would not be limited to stocks, but that in the future other investment instruments such as fixed income will be integrated, to that can also be used as collateral within the Onyx digital ecosystem.
Continue reading: JP Morgan is working on a crypto wallet
