JPMorgan, Goldman Sachs, Others Trial Blockchain Technology For Debt Issuance

Blockchain, News | April 20, 2018 By:

JPMorgan Chase, Goldman Sachs and other large firms have tested a new blockchain platform for issuing financial instruments.

The trial, which seeks to streamline origination, settlement, interest rate payments, and other processes, was conducted with a number of participants, including the National Bank of Canada, Pfizer, Legg Mason’s Western Asset, and other investors in the certificate of deposit.

The trial mirrored the Canadian bank’s $150 million offering on the same day of a one-year floating-rate Yankee certificate of deposit. The test used a new platform that has been built using JPMorgan’s open-source blockchain platform Quorum.

“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.

Umar Farooq, head of blockchain initiatives for JPMorgan’s corporate and investment bank, said that the bank is considering spinning off Quorum as the technology has attracted significant interest. He added that the spin-off discussions are in the early stages and the bank has received interest from financial institutions and large enterprise technology companies.

Farooq also revealed the bank’s plans to bolster the Quorum team with more engineers from its other divisions who have become familiar with the technology.

Earlier this month, Amber Baldet, JP Morgan’s best-known blockchain executive, left the bank to start a business of her own. Baldet has been the head of JPMorgan’s Blockchain Center of Excellence, which carried out several pilots and mapped out the bank’s blockchain strategy. She also led product development for Quorum.