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JPMorgan Finds New Use for Blockchain in Trading and Lending

  • Bank eyes tokenizing equities, fixed income and other assets
  • Platform may eventually serve as bridge to DeFi protocols

JPMorgan Chase & Co is using blockchain for collateral settlements, the latest Wall Street experimentation with the technology in the trading of traditional financial assets. 

The bank’s first such transaction came on May 20, when two of its entities transferred the token representation of BlackRock Inc. money market fund shares as collateral on its private blockchain. The effort will allow investors to pledge a wider range of assets as collateral and use them outside of market operating hours, according to New York-based JPMorgan.