JPMorgan Tokenized Collateral Network (TCN) goes live! BlackRock and Barclays complete first transaction.

According to a report from Bloomberg, JPMorgan's Tokenized Collateral Network (TCN) has officially launched! BlackRock utilized tokenized shares of a money market fund as collateral for derivative trades with Barclays, and completed the first transaction on its Onyx platform using JPMorgan's newly introduced tokenized collateral network, TCN.

JPMorgan's Tokenized Collateral Network (TCN)

JPMorgan's Tokenized Collateral Network (TCN) is an application that allows investors to use assets as collateral on its proprietary Onyx blockchain. Starting with money market funds, it transfers collateral ownership using blockchain technology to enhance transparency, reduce manual reconciliation processes, and decrease settlement times.

The key is that the on-chain transfer does not require moving assets on the underlying ledger, allowing investors to earn returns on their investments simultaneously. Investors can also utilize their tokenized collateral in other applications within the Onyx digital asset ecosystem.

Beyond money market funds, tokenized collateral will also support stocks and bonds in the future

The first public trade settled on JPMorgan's new Tokenized Collateral Network (TCN), which also operates on the Onyx blockchain. BlackRock's money market fund shares were tokenized and deposited at Barclays Bank as collateral for derivatives trading.

Tyrone Lobban, Head of JPMorgan's Onyx Digital Assets, emphasized that the transactions are "instantaneous," eliminating delays associated with traditional methods. He further noted that as this technology is deployed at a larger scale, it could potentially enhance efficiency by releasing capital as collateral for ongoing trades. There are plans to expand the asset scope to include stocks and bonds in the future.

Onyx Expands to the Middle East

According to thecryptonewswire, JPMorgan's Onyx Coin Systems has made significant progress in the Middle East.

The largest bank in the United Arab Emirates, First Abu Dhabi Bank (FAB), completed a blockchain-based cross-border payment pilot with JPMorgan's Onyx Coin Systems, stating that the pilot phase was "seamless and delivered satisfactory response times."

Additionally, Bahrain-based ABC Bank has been testing the Onyx system and has started rolling out some services.