JPMorgan’s Tokenized Collateral Network, or TCN, was used by BlackRock Inc. to turn shares in one of its money market funds into digital tokens, which were then transferred to Barclays Plc as collateral for an over-the-counter derivatives trade between the two institutions, Tyrone Lobban, head of Onyx Digital Assets at JPMorgan, said in an interview.
According to JPMorgan’s Lobban, using the bank’s blockchain network Onyx Digital Assets, meant the collateral moved almost instantaneously, compared with over the course of a day. At scale, the technology would increase efficiency by freeing up locked capital so that it could be used as collateral in ongoing transactions, he said.
“Institutions on the network can use a wider scope of assets to meet any collateral requirements they have on the back of trading,” Bond said in an interview.Now the application is live, the bank has a pipeline of other clients and transactions, he added. JPMorgan tested TCN using an internal transaction in May.