JPMorgan Experiments On Quorum For Debts Issuance On Blockchain
JPMorgan, the biggest US-based bank is joining forces with the national bank of Canada amongst others to develop an application for debt issuance with Quorum technology on blockchain.
The app would be designed to perform debt issuance across origination, distribution, execution, settlement as well as the interest rate and maturity payments. The intention is to slash the cost and the need for service providers. The leading institutional investors were attracted by the Yankee COD.
Goldman Sachs Asset Management (GSAM), pharmaceutical giant Pfizer and a Legg Mason subsidiary Western Asset, are amongst others that were attracted by the Yankee COD. The attraction is the open-source Quorum which is an enterprise version of Ethereum which is designed for financial institutions.
According to JPMorgan’s Blockchain Program lead Christine Moy, In a press release statement:
“This is an exciting example of how J.P. Morgan leveraged our combined capabilities in capital markets and blockchain technology, delivering results to a diverse set of clients. We look forward to exploring blockchain-enabled capital markets applications … and how working together on open source technology like Quorum can enable and accelerate this progress.”
Amber Baldet was the former JPMorgan’s Blockchain Program Lead, before being replaced by Christine. Amber who was one of the key architects of Quorum left to begin her own company.
Quorum is a move in the right direction, however, it’s not the first of its kind as it follows after UK-based Nivaura in conjunction with Microsoft’s Azure cloud technology. The pair successfully structured nodes to retail investors.
In a bid to showcase the power of Quorum and what it can offer, Nivaura made reference to a retail investment firm that completed a bond issuance last year. In that deal, the expenses were reduced from GBP 30,000 to GBP 50 for the product’s duration.
Banks are beginning to adopt the technology not wanting to be left behind. National Bank of Canada’s David Furlong said: “Blockchain-related technologies have the potential to bring about a major change in the financial services industry.”
GSAM’s David Fishman said: “We’re excited to have the opportunity to learn from this test and to help develop more efficient ways of trading – from providing more transparency to streamlining processes and minimizing transaction costs.”
What’s your opinion about the innovative Quorum technology? Would it stand the test of time and be adopted by users, or will it be just a regular blockchain technology? Let’s know what you think by leaving a comment below.
Featured Image: JPMorgan
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