JPMorgan and HSBC Accelerate Blockchain Adoption Ahead of 2024 Target
Summary:
Major financial institutions like JPMorgan and HSBC are boosting their blockchain activities, aiming for full incorporation of distributed ledger technology by 2024. JPMorgan executed its first decentralized finance trade on a public blockchain and introduced programmable payments for its JPM Coin. Meanwhile, HSBC trialed tokenized deposits and launched a platform for holding tokenized securities. This increased activity demonstrates a shift from previous skepticism surrounding blockchain technology to widespread recognition of its potential.
Major finance institutions including JPMorgan and HSBC have been increasing their involvement in blockchain-related ventures, gearing to fully incorporate distributed ledger technology (DLT) into traditional finance by 2024. As observed in November, these key finance players, JPMorgan and HSBC among them, have significantly expanded their blockchain-oriented operations. On November 3, JPMorgan conducted its maiden decentralized finance (DeFi) transaction employing a public blockchain. The financial conglomerate further introduced programmable payments for JPM Coin, its institutional-targeted blockchain platform, on November 10. In addition, top brass at JPMorgan Chase and Apollo indicated plans for a tokenized enterprise mainnet on November 28.
Beyond JPMorgan, HSBC has also been quite active. The bank, in partnership with Ant Group, trialed tokenized deposits within an experimental context provided by the Hong Kong Monetary Authority on November 1. In another collaboration with Ripple-owned technology company Metaco, HSBC launched a platform for holding tokenized securities on November 8.
Given the active involvement of these financial heavyweights, it appears that the previously sceptical outlook on DLT is being replaced by recognition of its potential. As stated in a Bloomberg report, Sandy Kaul, a top executive at asset management firm Franklin Templeton, said that the adoption rate for this technology was "accelerating very quickly". For the first time, she observed, there seems to be a clear route towards restructuring global financial markets.
Franklin Templeton is one of several asset managers currently competing for a Bitcoin ETF. The firm submitted an application for a spot Bitcoin ETF to the United States Securities and Exchange Commission (SEC) on September 12.
While there's a notable thrust by major companies towards blockchain, there are still those taking a steadier, small-scale approach. MoneyGram CEO Alex Holmes disclosed in a Bloomberg interview that they have a team of only 20 dedicated full-time to blockchain endeavours, which scales appropriately with their revenue and profitability projections.
Published At
12/19/2023 12:14:20 PM
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