JPMorgan Chase Is Using Blockchain for Collateral Settlement

JPMorgan Chase & Co is using blockchain for collateral settlements, the latest Wall Street experimentation with the technology in the trading of traditional financial assets. The bank’s first such transaction came on May 20, when two of its entities transferred the token representation of BlackRock Inc. money market fund shares as collateral on its private blockchain. The effort will allow investors to pledge a wider range of assets as collateral and use them outside of market operating hours, according to JPMorgan. Blockchain-based collateral settlement can be used for transactions such as derivatives and repo trading, as well as securities lending. In the coming months, the bank plans to expand tokenized collaterals to include equities, fixed income and other asset types, it said.