- JPMorgan and other participants tried out the proposed Quorum Blockchain platform.
- The platform is claimed to make the process of issuing financial instruments more efficient.
United States: Reuters reported on Friday, 20th April, JPMorgan Chase, the National Bank of Canada, as well as other participants from the banking sector have tried out the Quorum Blockchain platform with the intention of making the procedure of issuing financial instruments more efficient. The platform was tested on Wednesday, 18th April, and the other participants include Legg Mason Inc’s Western Asset, Pfizer Inc, Goldman Sachs Asset Management, and other certificates of deposit investors.
According to a Reuters, the experiment on the Quorum Blockchain platform, which JPMorgan has been building since last year, “mirrored the Canadian bank’s $150 million offering on the same day of a one-year floating-rate Yankee certificate of deposit.”
The Senior Vice President of artificial intelligence (AI), VC, and Blockchain at the National Bank of Canada, David Furlong, stated that:
“Blockchain-related technologies have the potential to bring about major change in the financial services industry.”
JPMorgan released a report last March that it is contemplating making Quorum an independent entity in order to attract more partners that would have otherwise been scared off if they are JPMorgan’s competitors. Head of Blockchain initiatives at JPMorgan, Umar Farooq, told Reuters that one of the reasons that led to Quorum’s spin-off is excess requests from customer service. Umar added that some unnamed financial institutions have shown huge interest and that in the meantime the platform would be further developed by inviting Blockchain savvy engineers from other JPMorgan divisions:
“We haven’t really seen a lot of really large scale things go into production yet. There are few cases where Blockchain can really shine.”
The Quorum Blockchain platform, which is modeled after the Ethereum Go client, operates on the Ethereum (ETH) Blockchain. Quorum is used by Pfizer (who partook in the experiment), Microsoft Azure and Genentech, among others.