For the last 6 months Goldman Sachs has been working on JPMorgan Chase’s custom blockchain and using their trade platform. The news was confirmed by Mathew McDermott, a member of Goldman Sachs’ Global Markets division.
The first trade was made quite recently in which the bank swapped a tokenized version of US Treasury bond for JPM Coin. The platform was launched by JPMorgan to make their repo agreements more efficient. The platform’s base country is the JPM Coin, a stablecoin backed by a reserve of US Dollars.
Goldman Sachs has been one of the first financial institutions to notice the platform. Last year the global markets team of Goldman Sachs praised the blockchain based system created by JPMorgan. Saying that this would become a solution to a real world problem in space.
A Pivotal Moment for Blockchain
The Goldman Sachs team called it a pivotal moment for the banking sector. Praising the system they said that it is a better way than the traditional repo markets. Due to blockchain integration in the platform it allows for much more data than traditional methods.
The smart contract integration makes it really fast as well. Through the smart contracts the both collateral and cash interchange can happen at the same time. A move which can never happen in the traditional repo markets. For banks which pay interest per minute this is revolutionary.
JPMorgan was one of the banks that were really against crypto at first. However, in 2019 the bank launched its own crypto for making international settlements between their clients easier. Ever since its launch the coin has been integrated into many of JPMorgan’s businesses.
