Blockchain: Fidelity and JP Morgan Join Forces on Tokenization Project

Traditional finance continues to be interested in cryptocurrencies. Fidelity recently tokenized a money market fund on JP Morgan’s private blockchain.

JP Morgan is increasingly turning to blockchain. Bank of America, while skeptical of cryptocurrencies, is increasingly active in blockchain technology and “tokenization.” Fund management firm Fidelity International recently “tokenized” shares on JP Morgan’s Ethereum-based blockchain called Onyx Digital Assets.

The aim is mainly to reduce transaction costs, strengthen security, offer more flexibility to investors and reduce transaction risks. Fidelity has already participated in a similar project with the Swiss bank Sygnum.

A fruitful experience

JP Morgan already welcomed the Blackrock money fund to its blockchain last October. The customer experience was successful, the effectiveness of collateral research was proven, and operational and transactional risks were reduced.

While JP Morgan remains highly skeptical of the idea of ​​plunging into the crypto market, the possibility of working with other major entities to modernize the banking system through blockchain is increasing.

As a reminder, “tokenization” is the process of transforming real assets into digital assets on the blockchain. This makes it possible to promote physical assets (precious metals, real estate, etc.) in the digital world.

Sébastien Bordry and Antoine Larigaudrie

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