JPMorgan joins National Bank of Canada to test debt issuance on blockchain

Friday 20 April 2018 09:43 CET | News

JPMorgan Chase together with the National Bank of Canada and other large companies have tested a new blockchain platform for issuing financial instruments.

Participants in the experiment included Goldman Sachs Asset Management, the fund management arm of Goldman Sachs Group, Pfizer and Legg Mason’s Western Asset and other investors in the certificate of deposit. The trial aims to streamline origination, settlement, interest rate payments and other processes. The test mirrored the Canadian bank’s USD 150 million offering on the same day of a one-year floating-rate Yankee certificate of deposit, according to an official statement cited by Reuters.

The platform was built over more than a year using Quorum, a type of open-source blockchain that JPMorgan has developed in-house and is in discussions to spin off. According to the bank’s representatives, the spin-off discussions are in the early stages and JPMorgan has received interest from financial institutions and large enterprise technology companies. Moreover, JPMorgan plans to beef up the Quorum team with dozens of engineers from the bank’s other divisions who have become familiar with the technology.

Still, blockchain is in the early stages of development in the financial industry, and “there are few cases where blockchain can really shine”, Reuters cited the bank’s representative.

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Keywords: JPMorgan Chase, National Bank of Canada, blockchain, settlement, interest rate payments, partnership, trial
Categories: Payments & Commerce | Payments General
Countries: World
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