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JPMorgan Chase's JPM Coin digital currency JPM is being used commercially for the first time this week by a large technology client to send payments around the world. That development, along with other behind-the-scene moves, persuaded JPMorgan to create a new business to house its blockchain and digital currency efforts called Onyx. https://www.jpmorgan.com/onyx/index

The first live trades JPMorgan conducted were between the bank's broker-dealer and banking units, using the Onyx blockchain platform. In a test environment, JPMorgan has also traded with Goldman using Bank of New York Mellon Corp. as the triparty agent. Goldman is expecting to join Onyx for intraday repo trading as soon as January.

JPMorgan is partnering with Singapore's DBS and Temasek to form Partior - Latin for "to distribute and share" - to apply distributed ledger technology (DLT) to reach final, instantaneous cross-border interbank settlements. The Partior platform will also enable "atomic" or instantaneous settlement of payments for various types of financial transactions. The platform will start with a focus on facilitating flows primarily between Singapore-based banks in both USD and SGD, with the intent to expand service offerings to other markets and in various currencies. Partior's platform will also be designed to complement ongoing central bank digital currency (CBDCs) initiatives and use cases.

IBM said at least two major U.S. banks are considering whether to follow JPMorgan Chase & Co.'s lead in issuing a stablecoin. IBM said it is also working with six non-U.S. banks on digital currencies, including BNK Financial Group Inc.'s Busan Bank in South Korea, and in the Philippines, Rizal Commercial Banking Corp., which is expected to issue a stablecoin in the second quarter. The banks are awaiting approvals from regulators.

JPMorgan Chase is to start trials of its "JPM Coin" cryptocurrency in conjunction with corporate clients.

JPMorgan Chase & Co is in talks to merge its marquee blockchain unit Quorum with Brooklyn-based startup ConsenSys, according to people familiar with the plans, according to sources.

JPMorgan has filed a request with the U.S. Securities and Exchange Commission to approve a debt instrument linked to 11 firms that have all invested in Bitcoin and other crypto-assets. The debt instrument will enable investors to have direct exposure to a basket of cryptocurrency-focused firms. 68% of the "Basket" will be made up of MicroStrategy, Square, Riot Blockchain, and NVIDIA. Other companies that are included in the debt instrument are PayPal, Advanced Micro Devices, Taiwan Semiconductor Company, Intercontinental Exchange, CME Group, Overstock.com and Silvergate Capital.

"The cryptocurrency has jumped about 14% over two days and was trading at $38,295 as of 11:05 a.m. in London on Thursday. While the momentum may cheer bulls, a JPMorgan Chase & Co. team said backwardation in a part of the futures market -- where the spot price is above futures prices -- is reason for caution."

JPMorgan is reportedly exploring crypto-asset clearinghouse options, looking for a middleman to sit between over-the-counter (OTC) desks and traders to guarantee the enforcement of a trade and create liquidity in the market. Clearinghouses, designed to sit in between trades in order to guarantee payment in the event either counter party defaults, ensure trading desks are able to handle orders.

JPMorgan Chase has reportedly taken on Coinbase and Gemini Trust as banking customers, the first time the bank has accepted clients from the cryptocurrency industry. The accounts were approved in April, and transactions are just starting to be processed. The bank is primarily providing cash-management services to the firms and handling dollar-based transactions for the exchanges' U.S.-based customers. It will process wire transfers, and deposits and withdrawals through the Automated Clearing House network, an electronic funds-transfer system.

JPMorgan Chase's blockchain team has developed a privacy feature for ethereum-based blockchains, obscuring not only how much money is being sent but who is sending it.

JPMorgan analysts don't see the U.S. dollar being toppled as the world's reserve currency anytime soon, but "more fragile" aspects of dollar dominance, including in trade settlement and the SWIFT messaging system, could be at risk. "Offering a cross-border payments solution built on top of a digital dollar would, particularly if designed to be minimally disruptive to the structure of the domestic financial system, be a very modest investment to protect a key means to project power in the global economy," they said. "For high-income countries and the U.S. in particular, digital currency is an exercise in geopolitical risk management."

JPMorgan executed a blockchain-based repo transaction using its JPMCoin wholesale stablecoin and atomic trade settlement that links the two legs of the transaction to ensure that the transfer of one asset occurs if and only if the transfer of the other asset also occurs. "The repo market provides a widely used form of secured financing, however, current operational limitations prevent the meaningful use of such financing to meet intraday liquidity needs. Using blockchain enables borrowers and lenders to execute shorter-term, intraday repo transactions with real-time, simultaneous transaction settlement, creating new ways to access intraday liquidity." https://www.businesswire.com/news/home/20201210005155/en/J.P.-Morgan-Executes-Intraday-Repo-Transaction-Using-Blockchain

JPMorgan has debuted its in-house blockchain-based tokenization application, the Tokenized Collateral Network (TCN) as it settled its first trade for BlackRock. The TCN, using blockchain technology, allows investors to transfer collateral ownership without moving assets in underlying ledgers. It was used by BlackRock to turn shares in one of its money market funds into digital tokens, which were then transferred to Barclays as collateral for an over-the-counter derivatives trade between the two institutions.

"Cryptocurrency firms may still be licking their wounds, but a slew of major financial companies including JPMorgan Chase, HSBC and Franklin Templeton are flipping the switch on new systems built around blockchain, marking an acceleration into 2024. A blockchain technology company backed by Goldman Sachs, UBS and Banco Santander processed the first payments through a platform that's been in the works for several years. Deutsche Bank's asset manager, DWS Group has partnered with firms including market-maker Flow Traders, to set up a company that will issue a stablecoin..."

"Cryptocurrency firms may still be licking their wounds, but a slew of major financial companies including JPMorgan Chase, HSBC and Franklin Templeton are flipping the switch on new systems built around blockchain, marking an acceleration into 2024. A blockchain technology company backed by Goldman Sachs, UBS and Banco Santander processed the first payments through a platform that's been in the works for several years. Deutsche Bank's asset manager, DWS Group has partnered with firms including market-maker Flow Traders, to set up a company that will issue a stablecoin..."

JPMorgan Chase has unveiled research on a Quantum Key Distribution (QKD) blockchain network that is resistant to quantum computing attacks. QKD utilizes quantum mechanics and cryptography to enable two parties to exchange secure data and detect and defend against third parties that are using quantum computers to attempt to eavesdrop on the exchange.

JPMorgan Chase & Co is using blockchain for collateral settlements. The bank's first such transaction came on May 20, when two of its entities transferred the token representation of BlackRock money market fund shares as collateral on its private blockchain. The effort will allow investors to pledge a wider range of assets as collateral and use them outside of market operating hours... In the coming months, the bank plans to expand tokenized collaterals to include equities, fixed income and other asset types.

The JPMorgan Chase-led Interbank Information Network (IIN) will this week announce Deutsche as a new recruit to a network of 320 banks which have agreed to swap information on global payments over blockchain, the mutually distributed ledger technology behind cryptocurrencies.

Goldman Sachs has joined the blockchain-based network created by JPMorgan Chase for repurchase agreements that use smart contracts and a digitized version of the U.S. dollar. On June 17 it swapped a tokenized version of a U.S. Treasury bond for JPMCoin, JPMorgan's internal representation of a digital dollar. The digitized upgrade provides same-day settlement ability using smart contracts on an Ethereum-based blockchain that allow cash and Treasuries to be returned instantaneously.