JPMorgan pioneers blockchain collateral settlement with BlackRock & Barclays ⛓️💸; Finally: Goldman Sachs sells troubled FinTech lender GreenSky 🤝💰

FinTech is Eating the World, 12 October

Hey Everyone,

Happy Thursday! Today's issue is really interesting as we’re going to look at JPMorgan pioneering blockchain collateral settlement with BlackRock & Barclays (what happened & why it could be HUGE + more reads on how JPM is dominating), and Goldman Sachs that finally managed to sell troubled FinTech lender GreenSky (what it means for Goldman + how Apple could have plaid a role). Let’s jump straight into the cool stuff 🌶

JPMorgan pioneers blockchain collateral settlement with BlackRock & Barclays ⛓️💸

The BIG news 🗞️ Banking giant JPMorgan JPM 0.00%↑ has executed the first live blockchain-based collateral settlement transaction involving other two finance giants BlackRock BLK 0.00%↑ and Barclays.

This pioneering move utilizes JPMorgan's Ethereum-based blockchain network Onyx and its new Tokenized Collateral Network (TCN) application.

Let’s take a look at what this means and why it’s important.

More on this 👉 The transaction involved BlackRock using TCN to tokenize shares of one of its money market funds. The tokenized shares were then transferred to Barclays as collateral for an over-the-counter derivatives trade between the two companies.

The tokenization process took just minutes, compared to the traditional settlement process which can take a full day. The near-instantaneous transfer of collateral between BlackRock and Barclays thus represents a major efficiency gain in an industry plagued by cumbersome settlement infrastructure.