JP Morgan has successfully trialed a blockchain based platform for the issuance of debt and to aid in the settlement process. The bank has also revealed its intentions to accommodate other traditional banking procedures such as interest rate payments which while unheard of for crypto users, could be complemented immensely by blockchain technology not only to save time but eliminate some labor costs.
The platform was launched as the Bank of Canada offered $150 million worth of one-year floating-rate Yankee certificate of deposits. Currently the bank has realized the potential for Quorum to be utilized out of financial applications but development will continue amid interest form a number of financial institutions which have not yet been named.
“Blockchain-related technologies have the potential to bring about major change in the financial services industry,” David Furlong, senior vice president of artificial intelligence, venture capital and blockchain at National Bank of Canada, said in a statement.
The Quorum blockchain
The blockchain technology put into use by JP Morgan was built after the investment of millions of dollars. Developed after careful analysis of the current Ethereum blockchain, the technology aims to fulfil both the needs of the financial sector while maintaining user privacy. To do this, the technology employs a Zero-knowledge security layer which while hiding personally identifiable information still allows auditors and officials to trace and audit transactions when needed.
To conclude, the successful trial by JP Morgan and the National Bank of Canada using blockchain technology to distribute and issue debt and settlement services may see extensive use by a number of financial institutions. A handful of big names have already become part of the current project including the likes of Goldman Sachs Asset Management, Pfizer INC and even Legg Mason Inc’s (LM.N) Western Asset arm.