JPMorgan Chase & Co and the National Bank of Canada (NBC), together with other firms, tested a blockchain platform for the issuance of debt certificates, in order to make the different stages of the process more efficient. In a press release issued by the National Bank of Canada on Friday, the issuance of a one-year deposit certificate of $150 million, was reported, and this process was accompanied by a simulation of the issue in parallel, through the use of a blockchain platform.
Other participants in this test, were Goldman Sachs Asset Management, Pfizer, and Western Asset. According to Investopedia.
The platform that was tested in conjunction with the National Bank of Canada was the blockchain Quorum, which is an open-source variant of the Ethereum (ETH) blockchain, adapted to security and privacy requirements of corporate applications. JP Morgan defines Quorum as Ethereum’s version focused on companies.
Among the benefits of Quorum, according to JP Morgan, the bank stresses that it is designed for applications “that require high speed and high processing capacity of private transactions within a permissible group of known participants”.
The technologies related to blockchain have the potential to bring great changes in the financial services industry
“The National Bank of Canada is proud to join forces with JP Morgan to test blockchain technology in the context of the issuance of a certificate of deposit. This is a unique opportunity to expand our knowledge in the blockchain. The National Bank of Canada will continue to innovate in the following years in the search for new ways to offer our partners more added value,” said David Furlong.
It should be noted that JP Morgan is the largest bank in the United States and has maintained a strong reserve attitude towards cryptocurrencies. Recently it was among the banks that prohibited the use of their credit cards for the purchase of cryptocurrencies.
Despite this, JP Morgan has been open to the potential of blockchain technology, which supports them. In general, the National Bank of Canada has shown a lot of interest in blockchain technology, despite its multiple reserves against cryptocurrencies, with which the financial world could manage the opportunities and challenges that the adoption of the blockchain.
