The management of the Bank JPMorgan announced its plans to tokenservice gold in the blockchain Quorum. Customers will receive tokens instead of certificates of ownership of precious metal.
According to employees of the Bank, the tokenization of gold has three main advantages:
- Transactions on purchase and sale of precious metal performed in a fully transparent network blockchain.
- Data about the owner of the gold's impossible to fake or change without the knowledge of the owner.
- Precious metal can be divided into shares, and then sell on their own, without the involvement of third parties.
The head of the Department of blockchain technology JPMorgan Umar Farooq said: "the Gold bars will be Packed in protective cases with electronic room. Owners of metals will be able to track the transport of gold from the manufacturer to the Bank vault. This technology also can be used for tokenization of diamonds".
In 2016, the Bank JPMorgan has developed a blockchain Quorum at a network of Ethereum. In June 2018, the Central Bank of the Republic of South Africa tested a Quorum and came to the conclusion that the network is able to handle the average daily volume of transactions in just 2 hours, the run time of a remittance was about 2 seconds. JPMorgan plans to use blockchain Quorum for trading commodities, including gold.
In may 2018 JPMorgan employees began to work on creating a blockchain platform for the issuance of syndicated loans (loans provided by several lenders). Experts suggest to make loans in the form of tokens that represent the portion of the syndicated loan. Another interesting project JPMorgan is MIBjankowska blockchain system, to which have joined 75 of partner banks.
JPMorgan is one of the world's largest investment banks, the capital of the company is estimated at $358 billion! Of course, the introduction of such a financial giant in the blockchain industry will promote the development of technologies of the distributed databases and will attract the attention of investors to the digital economy.