JPMorgan’s Blockchain Platform Set To Tokenize Gold
The world largest bank plans to cost on operational costs and enhance efficiency through the use of blockchain.
Quorum In Tokenization Plan
Banking giant JPMorgan from the US is set to tokenize gold bars. The initiative will be undertaken by the facility’s blockchain branch, Quorum. JP Morgan established Quorum which equates to ethereum blockchain. The platform enables users to run smart contracts while adhering to pre-planned rules to automate them.
Quorum which is backed by ethereum will enable miners to earn a premium on the world market in an affordable manner. According to a report by Financial Review, the latest announcement by the banking giants is a clear indication that new doors are opening up especially in the next ten years.
A while back, when blockchain hit the market, it was projected to be used in the financial sector with the goal of establishing cryptocurrencies. However, the blockchain technology application has shifted to other fields like education, health and retail.
JP Morgan has headquarters in New York and it is valued at $2.534 trillion making it the most valuable bank across the globe in terms of the market cap. Such a huge cap means that the bank had to venture into other products by looking at possibilities under blockchain. The facility wanted to use blockchain to cut on maintenance charges and deploy smart contracts in running recurring functions.
The Quorum platform was developed in collaboration with ethereum enterprise alliance. It was developed by using a technology from Core OS. Under the tokenization plan, Quorum seeks to digitize assets in an efficient manner to facilitate easy movement of other blockchains. The development was a subject for discussion at the Sibos forum in Australia.
Once the plan takes effect, the use of intermediaries will be eliminated. Exchanges and brokers will no longer be needed. In the end, we will have more direct transactions reducing the costs and risks involved.
At the beginning of this year, JP Morgan was slapped with a lawsuit for charging clients extra fees for buying cryptos without their prior permission. At the moment, the facility is exploring the idea of unveiling a custodial service for institutional investors who seek to join the digital currency world.