- JPMorgan, BlackRock, and Barclays executed their first live collateral settlement on the private blockchain network.
- Onyx.BlackRock tokenized money market fund shares for use as collateral in a derivatives contract.
- Blockchain settlement accelerated the process compared to traditional timelines.
JPMorgan, in collaboration with BlackRock and Barclays, recently executed its first live collateral settlement using its private blockchain network, Onyx. In this transaction, BlackRock tokenized money market fund shares, which were then used as collateral for a derivatives contract.
This approach, leveraging blockchain for settlement, significantly accelerated the settlement process when compared to the typical one-day timelines. JPMorgan contends that this enhanced efficiency allows for the reuse of collateral across ongoing transactions, ultimately unlocking capital efficiencies at scale.
Following the successful commercial production of its collateral trial, JPMorgan reports having a pipeline of clients and the development of various use cases. The bank had previously conducted internal testing of the…
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