Firms Test Blockchain for Trading, Collateral Management

Almost 40 firms, including JPMorgan Chase (JPM), Goldman Sachs (GS), and Invesco (IVZ), tested the use of tokenized assets on a blockchain to assess its potential for typical trading activity in July. The four-hour test was conducted with the help of the Depository Trust & Clearing Corporation (DTCC).

The aim of the test was to evaluate the feasibility of using blockchain technology for 24/7 trading, collateral management, and liquidity provision. This could potentially reduce settlement times, increase efficiency, and lower costs.

During the test, the firms traded tokenized assets on the blockchain, which were issued by the DTCC. The test was a collaborative effort between the participating firms and the DTCC to assess the potential of blockchain technology in the financial industry.