Despite the fact that a former CEO of JP Morgan has taken a negative stance against the cryptocurrency, today the Bank is working on a new system for dealing with debts on the basis of the blockchain.
In an exclusive interview with Finance Magnates source of JPMorgan Chase confirmed that the company is developing a platform of syndicated debt trading based on the blockchain that will be used within the country. Initially the platform will be tested in a commercial Bank of the firm; if successful, the platform will be extended to other “Sabanci” company.
At this stage, the platform “is just a concept of JPMorgan,” explained the source and, therefore, “testing without any customers.” A team of 25 developers working on the completion of a conceptual platform, which is planned by the end of July; if JPMorgan Chase will decide to continue to work on the project, the platform release will happen in December of this year.
Not based on Ethereum, but “Ethereum-Style”
While trading Fitna the currency will automatically be sold for its own coins platform (which still has no name). The transaction will then be listed in the “Ethereum – style” blockchain, and then converted back to Fiat. The aim of the project is to speed up the transaction.
The source added that although the true motivation JPMorgan Chase to create a blockchain is unclear, the developer believes that “they want to sell the idea of confidentiality and to remain centralized”. On a practical level, this means that the firm will monitor all registers and nodes, at least initially.
This new project is not the first foray JPMorgan on the blockchain. The firm has developed a platform based on the blockchain called the “Quorum” for more than two years ago for the same purpose; in March this year, JPMorgan considered the issue of registration of Quorum as a separate legal entity.