JPMorgan has achieved a significant milestone by successfully conducting its first live blockchain-based collateral settlement transaction. The transaction involved BlackRock and Barclays and utilized JPMorgan’s Ethereum-based Onyx blockchain and Tokenized Collateral Network (TCN). BlackRock tokenized shares from one of its money market funds, which were then transferred to Barclays as collateral for an over-the-counter derivatives trade. This tokenization of traditional financial assets is a major development for banks, with JPMorgan leading the way in this initiative. The TCN application facilitated the conversion of shares into digital tokens, enabling near-instantaneous transfer between BlackRock and Barclays. This marks the first instance of money market fund shares being used as collateral between bilateral derivatives counterparts. JPMorgan’s Onyx Digital Assets provides clients with access to intraday liquidity via repo transactions, and TCN offers additional utility by allowing clients to post tokenized MMF shares as collateral, meeting margin requirements in a faster and more cost-effective manner. JPMorgan has a pipeline of other clients and transactions for TCN, and the bank has been exploring various blockchain applications, including JPM Coin for wholesale client payments and a blockchain-based repo application. The tokenization of money market fund shares as collateral is expected to simplify processes, lead to faster transactions, and reduce risks during market volatility.

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Information	Details
Geography	North America
Countries
Sentiment	neutral
Relevance Score	1
People	Tyrone Lobban, Tom McGrath
Companies	Barclays, Citi, JPMorgan, BlackRock
Currencies	USDJPM, Ethereum
Securities	None