Oliver Wyman and JPMorgan Chase Research Blockchain Use in Banking
A research on the application of blockchain technology in commercial banking was recently done by JPMorgan Chase and consultants Oliver Wyman. The advantages of deposit coins in terms of stability and reliability have been noted by the paper’s writers.
Stablecoins, CBDCs, and Deposit Tokens
Deposit tokens, which are created on a blockchain by depository institutions to represent deposit claims, are distinct from CBDCs and stablecoins, which are usually created by private non-bank organizations. The paper’s authors stress the need of regulation in raising confidence, reducing the likelihood of a run on deposit tokens, and guaranteeing reliability.
There are no reserve requirements for stablecoins.
On the other side, stability and reliability are weak points for stablecoins. There are no requirements for reserves, and redemption rights are unclear.
The Internal JPM Coin and Onyx Blockchain Platform of JPMorgan Chase
By introducing its internal JPM Coin and the Onyx blockchain platform in 2020, JPMorgan Chase achieved a huge advancement in the blockchain industry. The bank has been exploring a number of technological applications, including cross-border trading, trades under repurchase agreements, and settlement of collateral.
Investment Counseling
It is crucial to conduct extensive study before making any financial selections, as usual. This article’s content is presented solely for educational purposes; it does not constitute investment advice.