A bank like JPMorgan may not be a fan of cryptocurrencies, but it finds Blockchain technology beneficial! It has now joined hands with several banks to use Quorom technology for debt issuance on Blockchain technology.

JPMorgan is an American multinational investment bank and financial services which are headquartered in New York City. It is one of the largest banking institutions in the United States and has collaborations with many banks around the world. Many corporations, governments, and institutions entrust their business to JPMorgan.

JPMorgan’s Twitter 23 hours ago read-

This test involved the issuance of $150 million of a one-year floating rate Yankee CD alongside a ‘simulation’ of the issuance on the blockchain.

Debt issuance is defined as a financial obligation that allows the issuer to raise funds by promising to repay the lender at a certain point in the future by a contract.

This move by JPMorgan and the rest of the collaborated banks will slash costs from service providers that charge a lot of money for clearing and settling. Collaborated banks include Goldman Sachs Asset Management, Pfizer, Legg Mason Inc’s Western Asset and several others.

Even National Bank of Canada has tied up with JP Morgan for this Blockchain technology which is Quorom.

David Furlon, Senior Vice President of Artificial Intelligence, Venture Capital and Blockchain at National Bank of Canada said-

“Blockchain-related technologies have the potential to bring about major change in the financial services industry. National Bank of Canada is proud to join forces with trusted partner J.P. Morgan to test blockchain technology in the context of a Yankee certificate of deposit issuance. This is a unique opportunity for us to expand our knowledge of blockchain. National Bank of Canada will continue to innovate over the coming years and remain on the lookout for ways we can bring our partners greater value.”

Quorum technology is JPMorgan’s Blockchain technology which is an enterprise-focused version of Ethereum which is perfect for high speed and processing of private transactions. Quorum aims to change the financial industry. It is modeled after the Ethereum Go client.

The lead of JPMorgan’s Blockchain Program Christine Moy said in a press release-

“This is an exciting example of how J.P. Morgan leveraged our combined capabilities in capital markets and blockchain technology, delivering results to a diverse set of clients. We look forward to exploring blockchain-enabled capital markets applications … and how working together on open source technology like Quorum can enable and accelerate this progress.”

GSAM’s David Fisherman explained the importance of the debt issuance test. He said, “ We’re excited to have the opportunity to learn from this test and to help develop more efficient ways of trading – from providing more transparency, to streamlining processes and minimizing transaction costs.”

Quorum team will be backed up with dozens of engineers from JPMorgan’s other divisions who are Blockchain experts.

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