JP Morgan employs blockchain technology for collateral settlement

By    30 May,2022

Blockchain collateral experience at JP Morgan

Because it is involved in at least two previous projects, the bank is well-versed in the usage of blockchain for this collateral use case. It is a shareholder in HQLAX, a significant European collateral platform, alongside Goldman Sachs, Citi, BNP Paribas, BNY Mellon, ING, Commerzbank, UBS, and Credit Suisse. The Deutsche Boerse, which offers a critical element of functioning, is the largest outside investor. In that instance, collateral and securities lending is utilized to ensure that banks have the appropriate mix of liquid assets as needed by Basel III banking rules.

It was also a founding partner in the collateral management platform for foreign exchange derivative transactions developed by the startup Baton System. Core Collateral, the startup’s distributed ledger technology platform, processes several billion dollars in transactions per day and claims to handle more than 40% of cleared bank derivatives margins globally.


Other DLT-based collateral and securities lending projects exist, including those from the Tel Aviv stock market, OCC securities, and the Spanish stock exchange, BME.


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