JPMorgan Chase, one of the largest banking institution in the US, has partnered with Digital Asset Holdings to experiment with distributed ledger technology in streamlining the bank’s trading/loan derivative products.
JPMorgan’s loan funds can be great beneficiaries of blockchain-based solutions as the funds still experience “liquidity mismatches” when clients withdraw money without prior notice.
In an interview with FT, Daniel Pinto, CEO of Corporate and Investment Banking at JPMorgan, said that the current loan process is very convoluted, “To sell a loan is a very cumbersome, time-consuming process; settlement can take weeks,”
Mr Pinto believes that the entire loan process could see a material improvement if blockchain technology is applied, “makes all the sense in the world; it’s easier and faster operationally, and you get fewer mistakes”.
The JPMorgan executive also understands that blockchain tech could improve the settlement process of just about every traded financial product on Wall Street:
“Blockchain will be big in everything related to settlement, and not just loans. While it is still early days, the technology looks very good,”
Digital Asset Holdings recently completed a $50 million funding round that was backed by some of the biggest names in the investment banking sphere such as BNP Paribas, ABN Amro and Citigroup.
Blythe Masters, CEO Digital Asset Holding, told FT that distributed ledgers will augment every facet of the trading experience.
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