JP Morgan’s Head of Blockchain Discusses Traditional Assets on the Chain
In a recent panel discussion at CCDt’s DTL Summit in London, Tyron Lobban, the head of JP Morgan’s blockchain division, revealed that the majority of his conversations with clients are focused on tokenized forms of traditional financial instruments rather than cryptocurrency. He emphasized that there is a significant conversation around bringing traditional assets onto the blockchain, as many institutions have already experimented with this. However, he also acknowledged that clients are currently not interested in getting involved with cryptocurrency due to recent bankruptcies and the lack of stability in Bitcoin’s price.
JP Morgan’s Forays into Blockchain
JP Morgan’s blockchain arm, Onyx, aims to tokenize traditional securities for instant exchange. Lobban mentioned that US banks face regulatory hurdles and red tape when using public blockchains, which led JP Morgan to establish Onyx as a private blockchain solution. While this allows JP Morgan to write smart contracts for public blockchains, Lobban still sees a need for connectivity between different platforms and financial institutions.
Other financial institutions such as Goldman Sachs, DBS, BNP, and several others are currently running nodes and tokenizing assets on Onyx.
Tokenized Collateral for Borrowing
Lobban highlighted how Onyx enables JP Morgan’s clients to enter into repurchase agreements (repos) by putting up collateral in the form of tokenized treasures. This allows borrowers to be specific about the duration and amount they need to borrow. The use of smart contracts ensures precise trade terms and facilitates the exchange of assets for cash at the right time.
Hot Take: JP Morgan Focused on Tokenizing Traditional Assets Rather Than Crypto
Tyron Lobban, the head of JP Morgan’s blockchain division, revealed that the majority of his conversations with clients revolve around tokenized forms of traditional financial instruments rather than cryptocurrency. While there is a growing interest in bringing traditional assets onto the blockchain, clients are currently hesitant to get involved with crypto due to recent bankruptcies and the volatility of Bitcoin’s price. JP Morgan’s blockchain arm, Onyx, aims to tokenize traditional securities for instant exchange. Lobban emphasized the need for connectivity between different platforms and financial institutions. Through Onyx, JP Morgan’s clients can use tokenized collateral for borrowing through repurchase agreements.
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