JPMorgan to Improve Debt Issuance With Blockchain
JPMorgan Chase, the investment bank, has recently partnered with the National Bank of Canada and some of the biggest names in the banking industry such as Goldman Sachs, and Pfizer, to try their blockchain platform out.
According to a Reuters report released on Friday, their blockchain platform is aimed at improving the process of debt issuance. The trial that took place on Wednesday saw participation from Legg Mason Inc’s Western Asset, Pfizer, Goldman Sachs Asset Management, and a lot of other banks.
The Senior Vice President of Blockchain at the National Bank of Canada, David Furlong said that the blockchain technology can potentially bring about a lot of major changes in the banking and in fact, the whole financial services industry.
According to the report, the debt-issuance platform, based on JPMorgan’s Quorum blockchain, took over a year to build. The company would later spin the Quorum project off as an independent company.
While blockchain is still in its early stages of development when it comes to the financial industry, JPMorgan is nothing short of optimistic regarding the potential of the technology. The Head of Blockchain Initiatives for JPMorgan’s investment and corporate arm, Umar Farooq said:
“We haven’t really seen a lot of really large scale things go into production yet. There are few cases where blockchain can really shine.”
Quorum, the open-source blockchain was launched as a version of ethereum with permissions back in 2016. The next year, it integrated the zero-knowledge security layer (ZSL) from Zcash, the privacy-focused public blockchain.
JPMorgan has planned to beef the Quorum team up with a few dozen engineers from the other divisions of the bank who are familiar with the technology.