For a bank that has distanced itself from cryptocurrencies, JPMorgan is sure fond of the blockchain.
The biggest US bank based on assets joined forces with the National Bank of Canada, among others, to develop an application based on its Quorum technology for debt issuance on the blockchain (corporate bonds, Treasury bonds, etc.) The test involved the issuance of $150 million of a one-year floating rate Yankee CD alongside a “simulation” of the issuance on the blockchain, according to the announcement. JPMorgan acted as the sole dealer.
The new app is designed to perform all of the features associated with debt issuance across “origination, distribution, execution, settlement” as well as interest rate and maturity payments. In doing so, it would slash the costs and the need for service providers that are typically paid hefty fees for clearing and settling.