JPMorgan Chase partners with Digital Asset Holdings to trial blockchain project

Innovation | February 1, 2016 By:

JPMorgan Chase announced it is partnering with Digital Asset Holdings to launch a trial project using blockchain technology that could reduce the cost and complexity of trading.

The pair are looking at several applications for the technology, including addressing liquidity mismatches in JPMorgan’s loan funds, which normally let investors take out their money at short notice — even though the underlying assets can require much more time to sell.

“To sell a loan is a very cumbersome, time-consuming process; settlement can take weeks. Exploring alternatives through blockchain “makes all the sense in the world; it’s easier and faster operationally, and you get fewer mistakes,” said said Daniel Pinto, head of JPMorgan’s investment bank.

JPMorgan Chase & Co. is an American multinational banking and financial services holding company headquartered in New York City. Digital Asset Holdings is a startup trying to develop mainstream uses for blockchain technology.