Wednesday, 23 January 2019

JPMorgan tests blockchain for debt issuance

JPMorgan and National Bank of Canada (NBC) have carried out a debt issuance simulation using a new blockchain platform.

NBC issued a US$150 million, one-year floating-rate Yankee certificate of deposit, with a parallel simulation of the issuance using blockchain technology. Goldman Sachs Asset Management, Pfizer, and Western Asset were among the investors in the Yankee certificate of deposit.

The test saw the banks mirror the execution of the actual transaction through a debt issuance application developed by JPMorgan that runs on Quorum, an open-sourced variant of the Ethereum blockchain.

The application is designed to incorporate functions across the entire debt instrument transaction lifecycle, including origination, distribution, execution, settlement, interest rate payments, and maturity repayments.

Christine Moy, blockchain programme lead, JPMorgan, says: "This is an exciting example of how JPMorgan leveraged our combined capabilities in capital markets and blockchain technology, delivering results to a diverse set of clients."

Last month it emerged that JPMorgan is considering spinning off Quorum as an independent entity.

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