What’s Going On?
JPMorgan Chase & Co today announced it had carried out a high-profile blockchain test with the National Bank of Canada (NBC) on Wednesday, reported Reuters.
Why Does It Matter?
There are big names involved. In addition to JPMorgan and NBC, Goldman Sachs Asset Management – the fund management arm of Goldman Sachs Group – and Pfizer took part in the test of a new blockchain platform for issuing financial instruments. JP Morgan said the company is looking to streamline origination, settlement, interest rate payments and other processes using blockchain.
The test mirrored the Canadian bank’s $150 million offering on the same day, JP Morgan told Reuters. The platform was built over a year using Quorum, the in-house, open-source blockchain the company is now looking to spin off as an independent company.
Who Is Paying Attention?
According to JPMorgan and NBC, an entire global financial industry. David Furlong, Senior Vice President of NBC’s Artificial Intelligence, Venture Capital and Blockchain, said:
“Blockchain-related technologies have the potential to bring about major change in the financial services industry.”
JPMorgan is now considering spinning off Quorum because the technology has attracted significant outside interest and to “increase the platform’s appeal”
The company plans to build up the Quorum team with engineers from other JPMorgan divisions which have also worked with blockchain technologies, Umar Farooq, Head of Blockchain Initiatives for JPMorgan’s corporate and investment bank, told Reuters the company has received interest from financial and technology companies, but declined to name the companies.