JPMorgan Chase&Co is testing a new blockchain platform for issuing financial instruments together with the National Bank of Canada and other large companies to optimize the organization of settlements, payment of interest rates and other financial processes. This test was a response to National Bank of Canada's proposal to issue US$150 million in floating rate certificates of deposit.
The platform was developed a year ago and built on Quorum, an open-source blockchain that JPMorgan continued to refine. Participants in the experiment included Goldman Sachs Asset Management, the fund management arm of Goldman Sachs Group Inc, as well as Pfizer Inc, Westgate Legg Mason Inc and other investors.
“Blockchain-related technologies have the potential to lead to major changes in the financial services industry,” David Furlong, senior vice-president of financial technology at National Bank of Canada, said in a statement.
“JPMorgan intends to stop supporting Quorum after testing because the technology has attracted significant interest from third-party users,” Umar Farooq, head of the blockchain initiative at JPMorgan Bank, said in an interview.
( The situation has turned in such a way that the bank’s specialists are forced to work in support mode for clients who use this platform. And the bank cannot take money for consultations, because software support is not part of the bank’s permitted activities. JPMorgan is constantly strengthening the Quorum team, attracting engineers from other divisions of the bank who are already familiar with the technologies.
This was reported on terms and conditions anonymous one of the bank's employees)
"Blockchain is taking its first steps in the financial industry, but JPMorgan is optimistic about its potential," says Faruk.
According to https://beta.theglobeandmail.com
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