Onyx

Collateral Network

On October 11, JPMorgan, the prominent U.S. banking institution, introduced its proprietary blockchain-powered tokenization platform called the Tokenized Collateral Network (TCN). 
<h2 id="span-style-font-weight-400-jpmorgan-dives-deep-into-blockchain-span">JPMorgan Dives Deep into Blockchain</h2> 
As reported by <a href="https://www.bloomberg.com/news/articles/2023-10-11/jpmorgan-jpm-launches-blockchain-settlement-in-blackrock-barclays-trade">Bloomberg</a>, JPMorgan’s Tokenized Collateral Network (TCN), an application enabling investors to use assets as collateral, successfully completed its inaugural trade with&nbsp; BlackRock.&nbsp; 
<h3 id="span-style-font-weight-400-blackrock-to-utilize-tcn-span">BlackRock to Utilize TCN</h3> 
BlackRock utilized JPMorgan’s Onyx blockchain, which is based on Ethereum, in conjunction with the bank’s Tokenized Collateral Network (TCN) to tokenize shares from one of its money market funds. 
Subsequently, these tokens were transferred to Barclays Plc to serve as collateral in an over-the-counter (OTC) derivatives trade. However, this advancement enables investors to transfer ownership of collateral without the necessity of physically relocating the assets within the underlying ledgers.&nbsp; 
<h2 id="span-style-font-weight-400-enhancing-capital-efficiency-span">Enhancing Capital Efficiency</h2> 
JPMorgan’s Head of Onyx Digital Assets, Tyrone Lobban has highlighted that the newly launched TCN platform has the potential to release capital for use as collateral in continuous transactions, thereby enhancing operational efficiency on a large scale.&nbsp; 
Lobban noted: “Onyx Digital Assets already enables clients to access intraday liquidity via repo transactions,” he added: “Now with the launch of TCN, clients can benefit from additional utility from their MMF investments by posting tokenized MMF shares as collateral – a faster, more cost-effective way of meeting margin requirements.” 
<h3 id="span-style-font-weight-400-jpmorgan-turns-positive-to-crypto-span">JPMorgan Turns Positive to Crypto</h3> 
Meanwhile, in July, <a href="https://thecoinrise.com/jpmorgan-says-that-judges-ruling-in-xrp-case-is-a-win-for-ripple/">JPMorgan analysts expressed a positive outlook</a> for the long-term prospects of the cryptocurrency market. They suggested that the outcome of the legal case involving Ripple’s XRP could potentially benefit Coinbase. This is because a favorable judgment in this case might set a precedent that could apply to the 13 tokens previously accused of being securities in the SEC’s legal action against Coinbase. In addition, JPMorgan has indicated that the hypothetical <a href="https://thecoinrise.com/bitcoin-spot-etf-approval-is-not-a-bullish-case-for-crypto-jpmorgan/">approval of a bitcoin exchange-traded fund (ETF)</a> by the SEC may not have a significant impact on the cryptocurrency market. 
The post <a rel="nofollow" href="https://thecoinrise.com/jpmorgan-introduces-tokenization-platform-details/">JPMorgan Introduces Tokenization Platform: Details</a> appeared first on <a rel="nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

JPMorgan Introduces Tokenization Platform: Details

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