JPMorgan Revolutionizes Collateral Management with Tokenized Collateral Network

Discover how JPMorgan is transforming the way investors leverage assets as collateral with their groundbreaking blockchain-based Tokenized Collateral Network (TCN) platform.

Unlocking Liquidity and Security

JPMorgan, in partnership with BlackRock, has introduced the Tokenized Collateral Network (TCN), an innovative blockchain solution that facilitates instant transfer of collateral ownership while ensuring privacy and security. By harnessing zero-knowledge technology, TCN enables clients to access intraday liquidity through secure repo transactions using tokenized collateral, eliminating the need for costly and unsecured credit lines.

The First Trade

The inaugural transaction through TCN involved JPMorgan and BlackRock converting money market fund shares into digital tokens. These tokens were then transferred to Barclays as collateral for an over-the-counter derivatives trade between JPMorgan and BlackRock. This milestone showcases the potential of TCN to revolutionize collateral management in financial transactions.

Onyx by JPMorgan

TCN is one of the groundbreaking initiatives under Onyx by JPMorgan, the bank's innovation arm dedicated to blockchain and digital assets. Onyx has already made waves in the industry, introducing the world's first bank-led blockchain platform for exchanging value, information, and digital assets. Notable partnerships with global giants like Starbucks, Square Enix, and L'Oreal demonstrate the transformative potential of Onyx and its commitment to revolutionizing the financial landscape.

"TCN is a game-changer for how assets are used as collateral. By using blockchain technology, we can make the collateral process far more efficient and secure." - Sandeep Nailwal, Co-founder of Polygon and Head of Onyx's Tokenized Collateral Network

Shaping the Future of Collateral Management

TCN represents an instrumental stride towards a more effective and secure financial future. By combining the power of blockchain technology with traditional asset management, TCN is poised to redefine the understanding and management of collateral in financial transactions. This revolution paves the way for enhanced liquidity, reduced costs, and strengthened security in the world of finance.