The post How BlackRock Used Crypto To Complete Deal On JP Morgan’s Blockchain appeared on BitcoinEthereumNews.com.

Per a report from Bloomberg, the world’s largest asset manager, BlackRock, achieved a new milestone in its crypto roadmap. The company has been working on new ways to integrate with blockchain technology and thus has partnered with other financial institutions. BlackRock Takes Another Step In The Crypto Space According to the report, BlackRock completed a transaction on the derivatives market using Onyx, the blockchain platform developed by JP Morgan. The transaction “used tokenized collateral,” or digital versions of shares from one of the asset manager’s funds. The asset manager used these tokens to settle a transaction with Barcles in an over-the-counter (OTC) trade. These operations occur between two parties, and the details regarding the price, order size, and other details remain hidden from the public. Tom McGrath, Deputy Chief Operating Officer of the Cash Management Group at BlackRock, said: Money market funds play an important role in providing liquidity to investors in times of high market volatility. The tokenization of money market fund shares as collateral in clearing and margining transactions would dramatically reduce the operational friction in meeting margin calls when segments of the market face acute margin pressures. The report indicates that this transaction represents an essential contribution to the volume of Onyx. The blockchain developed by the banking institution still records a “tiny” trading volume compared to JP Morgan’s legacy platform. Moreover, the transaction was settled “instantaneously” between the parties. A spokesperson for JP Morgan told Bloomberg that the operation could open a new world of possibilities for legacy financial institutions by allowing them to free up capital and increase efficiency across different markets. Ed Bond, Head of Trading Services at JP Morgan, stated: Institutions on the network can use a wider scope of assets to meet any collateral requirements they have on the back of trading.…

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Filed under: News - @ October 11, 2023 8:08 pm