J.P. Morgan launches Tokenized Collateral Network using Money Market Funds as collateral

From Bloomberg:
“What we’ve achieved is the friction-less transfer of collateral assets on an instantaneous basis,” Ben Challice, JPMorgan’s global head of trading services, said in an interview. While BlackRock wasn’t a counterparty, “they have been heavily involved since Day One, and are exploring use of this technology.”

Blockchain-based collateral settlement can be used for transactions such as derivatives and repo trading, as well as securities lending. In the coming months, the bank plans to expand tokenized collaterals to include equities, fixed income and other asset types, it said.

From Tyrone Lobban on LinkedIn

Today we’re ushering in a new era for the Collateral Market with the *launch* of the 2nd application on Onyx Digital Assets – “TCN”!

TCN, or Tokenized Collateral Network, will ultimately enable a broad set of collateral to be tokenized, transferred and settled. All in a matter of *seconds* 💸.

TCN on Onyx Digital Assets (ODA) will bring ultra mobility to the collateral market – reducing friction and cost, and bringing additional utility to previously trapped and hard-to-finance assets.

The first asset class available on TCN is Money Market Funds. Through our industry leading technology and legal & regulatory-compliant framework, collateral providers can now post tokenized MMF shares as collateral, with legal transfer of title!

Global Custodian reports:

J.P. Morgan is addressing collateral mobility through the launch of a new tokenised network after collaboration with BlackRock. This is a major development with regards to securities services innovation and the collateral space. Here’s what we know:

– The first transaction has taken place using tokenised Money Market Fund (MMF) shares as collateral.
– BlackRock has been heavily involved in the project – though not the first transaction – and is said to be “exploring the use of this technology”.
– The network will expand into equities, fixed income and a range of asset classes in the coming months.

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