Top US financial institutions test blockchain-based platform for debt issuance
Blockchain, as some of you might know, is the technology behind Bitcoin and several other cryptocurrencies. While governments and institutions are still skeptical about cryptocurrencies, blockchain has managed to gain a lot of positive attraction.
In the US, JPMorgan has built a type of open-source blockchain dubbed Quorum, using which the company developed a platform for issuing financial instruments. The latest news is that the investment bank along with the National Bank of Canada as well as some other popular firms has now tested this platform.
According to a CNBC report, the test was part of a broader aim to “streamline origination, settlement, interest rate payments and other processes.” Other entities involved in the test include Goldman Sachs Asset Management, Pfizer Inc, and Legg Mason Inc’s Western Asset.
JPMorgan says Quorum has attracted a lot of interest from other financial entities as well as enterprise tech firms, and that’s the reason why they are planning to spin it off. Discussions are in early stages though.
“We haven’t really seen a lot of really large scale things go into production yet. There are few cases where blockchain can really shine,” said Umar Farooq, head of blockchain initiatives at JPMorgan.
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