JP Morgan's Quorum blockchain opens new world of trading opportunities

A blockchain platform built by global investment bank JP Morgan is being used to “tokenise” gold bars to allow sustainable miners to earn a premium on global markets, an indication of new trading opportunities the disruptive technology will create over the coming decade.

Blockchain technology, initially deployed to create bitcoin, is moving into production in major investment banks – but it’s not being used to move money. Rather, banks are using it to manage global liquidity, improve information inefficiencies and create “crypto” assets (other than currencies).

JP Morgan has created an enterprise version of the Ethereum blockchain – known as Quorum – which allows for the operation of “smart contracts”, or a computer program that automates processes based on a set of rules.

“We are the only financial player that owns the entire stack, from the application to the protocol,” said JP Morgan’s New York-based head of blockchain initiatives, Umar Farooq.

“We are big believers in Ethereum.”

Ethereum is a more decentralised blockchain than other enterprise systems, although Quorum has been adapted for financial services customers to provide high-grade privacy and performance.

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Source: JP Morgan’s Quorum blockchain opens new world of trading opportunities | afr.com