JPMorgan expects blockchain use in finance to increase as the crypto sector grows. The global investment bank says: “We want to ensure that we are not only able to support this, but are also ready to offer related services.”

JPMorgan blockchain plans

JPMorgan Chase & Co anticipates increased adoption of blockchain in traditional finance and is preparing to offer related services, Bloomberg reported on Thursday.

The global investment bank uses a blockchain for collateral processing, allowing its clients to use a wider range of assets as collateral and trade outside of market hours. The first such transaction took place on May 20th.

Ben Challice, Global Head of Trading Services at JPMorgan, was quoted as saying:

What we have achieved is the smooth transfer of collateral values ​​on an instant basis.

In addition to derivatives trading, repo trading and securities lending, JPMorgan plans to expand tokenized collateral to equities, fixed income and other types of assets.

Tyrone Lobban, head of JPMorgan’s Blockchain Launch and Onyx Digital Assets, explained that over time, the bank’s blockchain could potentially be a bridge connecting institutional investors to decentralized finance (defi) platforms in the crypto economy.

He continued as the crypto sector grows:

There will be an increasing number of financial activities taking place on the public blockchain, so we want to make sure that we are not only able to support this, but are also willing to offer related services.

In February, JP Morgan opened an Onyx by JP Morgan lounge at the Metaverse. The bank valued the Metaverse as “a trillion-dollar revenue opportunity across advertising, social commerce, digital events, hardware and monetization for developers/creators.”

Jamie Dimon, CEO of JPMorgan, while skeptical about bitcoin and crypto, is optimistic about blockchain. He said in April, “Decentralized finance and blockchain are real, emerging technologies that can be deployed both publicly and privately, sanctioned or not.”

This week, strategists at JPMorgan released a bullish report on bitcoin and cryptocurrency, noting that the price of BTC has “a significant uptrend.” The bank has also replaced real estate with cryptocurrencies as its “preferred alternative asset class.”

What do you think of JPMorgan’s blockchain plans? Let us know in the comment section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economics and cryptography.

photo credit: Shutterstock, Pixabay, WikiCommons

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