Banking giant JPMorgan Chase has begun the trial of a blockchain project that may prove to be a landmark endeavor in bringing cost-cutting and easier trading to the banking industry. The blockchain project is facilitated by the bank’s collaboration with blockchain-startup Digital Asset Holdings (DAH).
The largest bank in the United States by assets – JPMorgan Chase has begun a trial project that utilizes blockchain technology, in collaboration with New York-based blockchain startup Digital Asset.
The two companies are looking to introduce distributed ledger or blockchain technology to the current financial industry. One of the immediate uses of the trial project is to address liquidity mismatches in JPMorgan’s loan funds, as revealed by the Financial Times on Sunday.
Speaking to the publication, Daniel Pinto, head of JPMorgan’s investment bank noted that loans were a good sector for blockchain technology to be trialed. He sees the current loan system as one where “the settlement process is complex with lots of manual intervention and multiple parties.”
To sell a loan is a very cumbersome, time –consuming process.