The global investment bank JP Morgan’s Quorum is building a blockchain platform so that it can be used to tokenize gold bars. It will allow the sustainable miners earn the finest rates in the global markets thereby introducing new trading opportunities ever created by any disruptive technology in coming more than a decade. As per the largest bank in the world, until now 75 banks have signed up to join its new payments information network.
Powered by Quorum, the network is a permission variant of the Ethereum blockchain and is already grabbing a lot of attention. It is the first time that banks have joined any blockchain-enabled platform in a live application in such a large number.
The Interbank Information Networks (IIN) will soon complete sign up of 100 banks which partly reflect the hold of JP Morgan, the largest clearer of US dollar globally with treasury services business processes reaching around 26 million payments transactions/pay, in total value over $3 trillion in 100 countries and 108 currencies.
Blockchain technology platform was initially deployed for creating Bitcoin. But now banks are using it for managing global liquidity, creating crypto assets and improving information inefficiencies. JP Morgan is one bank which is quite ahead when it comes to using this technology. The company has come up with an enterprise form of the Ethereum blockchain called Quorum, Financial Review reported.
Umar Farooq, the head of blockchain initiatives of JP Morgan based in New York said, “We are the only financial player that owns the entire stack, from the application to the protocol. We are big believers in Ethereum.” Ethereum offers more decentralized blockchain as compared to other enterprise systems. However, JP Morgan’s Quorum is used for financial services and to provide the customers high-grade performance and privacy.
This development of blockchain platform for tokenizing gold bars will allow trading directly between parties without the need of any intermediary including exchange or broker. The main intention of the bank behind the launch of this platform is to overcome the obstructions that lead to money getting stuck during transactions. According to the head of EMEA payments and FX at the bank, Sungmahn Seo it is in the interest of the largest dollar clearer in the world that the international payment system performs at its best, Euromoney reported.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]