By Daniel G. Viola, Partner of Sadis & Goldberg, LLP, a New York based law firm. Daniel is the Head of the Digital Asset and Compliance Groups at his firm and is also the founder of the Crypto Asset Webinars and the Blockchain Shift Conferences.

On July 19, 2018, the U.S. Patent and Trademark Office approved the patent request from JPMorgan Chase & Co. (“JPM”) for a system that leverages Blockchain for the management of virtual receipts backed by assets or bonds.

JPM is one the largest financial holdings companies in the world. It was founded in 2000 by a conglomeration of several big financial organizations and currently employs Jamie Dimon as its CEO. Not only is it the largest bank in the US, it is also the second most valuable bank by market capitalization in the world.

The new patent, entitled “Systems and methods for management of asset or obligation-backed virtual receipts on a distributed system,” includes a new form of a public blockchain-based method for the management of virtual receipts, which can take the form of tokens.

JPM’s new patent will allow investors to turn their assets on the stock market into tokens, or “virtual receipts.” These virtual receipts can be traded and redeemed, much like an ICO token. The assets will also be treated as securities. The patent explicitly states that the tokens will exist on a “blockchain-based distributed ledger.”

Despite Mr. Diamond’s past negative comments about Bitcoin, JPM has embraced Blockchain technology. JPM has collaborated with Zcash developers on the security of its own Quorum blockchain, and the firm’s past patents include a blockchain-based cross-border payment system for banks.

JPM’s patent may be challenged by others that have filed patents, including tZERO, a subsidiary or Overstock.com. JPM clearly is embracing the Blockchain and dedicating resources to focus on tokenized assets. The fight for market share is on.