JPMorgan Chase tests blockchain technology for collateral settlement

JPMorgan Chase (NYSE:JPM) has started using the blockchain for collateral settlements, its latest experiment in applying the technology to trading of traditional financial assets. On May 20, two JPM entities transferred a token representation of Blackrock (BLK) money market fund shares as collateral on its private blockchain, Bloomberg reported Thursday. If applied more broadly, investors would be able to pledge a wider range of assets as collateral and execute them outside of market operating hours, the company said. "What we've achieved is the frictionless transfer of collateral assets on an instantaneous basis," Ben Challice, JPMorgan's (JPM) global head of trading services said in an interview with Bloomberg's Yueqi Yang. BlackRock (BLK) wasn't a counterparty in the transaction. However, it was "heavily involved" with the process and is exploring use of the technology, Challice said. JPMorgan (JPM) has been working on blockchain projects for years. In 2019, the bank posted more