JPMorgan Chase is taking steps towards creating its own private blockchain network, standing out among other financial institutions that utilize open solutions like Ethereum.
Transaction on a Public Ledger
This week, JPMorgan's blockchain division, Kinexys, successfully completed its first transaction on a public ledger using Ondo Finance's platform to tokenize bonds. This operation was made possible by Chainlink's interoperability protocol, which ensured secure data exchange between JPMorgan's internal systems and Ondo's public blockchain.
Regulatory Challenges
Previously, JPMorgan had exercised caution regarding cryptocurrencies due to regulatory uncertainty. In the face of uncertain political conditions, offering cryptocurrency services posed risks for institutions. However, changes in the political climate have suggested a more pro-innovation attitude towards cryptocurrencies.
Institutional Shifts in the Crypto Market
The cryptocurrency market has begun to attract the attention of major companies. Morgan Stanley plans to launch cryptocurrency services for E*Trade clients, Fidelity is working on a stablecoin, and BlackRock is looking to launch a staked Ether ETF. Such institutional shifts may lead to the creation of a new tier of interbank payments.
The establishment of JPMorgan's private blockchain network and the active use of technologies such as Chainlink demonstrate the shifts in large financial institutions' approaches to digital technologies and cryptocurrencies.
