Blockchain Development Head at JPMorgan Reveals Shift Towards Asset Tokenization
Date: 2023-10-06 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
Speaking at the Digital Asset Summit organized by CCDAS in London, Tyrone Lobban, who leads the blockchain development program at JPMorgan, shed light on the bank's shift in focus. Lobban is responsible for devising and implementing blockchain-based solutions that cater to both the bank's needs and those of its clients. He emphasized that nearly all institutional clients collaborating with the bank's blockchain division are now geared towards tokenizing traditional financial assets and utilizing blockchain technology.
Lobban also pointed out that in the past year, many major international banks, broker-dealers, and asset management firms have been engaging with controlled or public blockchains. Some have even ventured into pilot projects to explore the potential of this technology. Lobban revealed that numerous financial institutions are using JPMorgan's Onyx blockchain platform for asset tokenization. He highlighted that smart contracts enable clients to precisely coordinate the terms of their transactions and ensure timely fund transfers.
However, Lobban mentioned that the enthusiasm of the bank's clients for cryptocurrencies has significantly waned. Some are hesitant to enter the cryptocurrency space, while others intend to defer this matter to more opportune times. He attributed this shift in sentiment to a series of cryptocurrency company bankruptcies last year. In his view, the era of massive returns from Bitcoin investments is drawing to a close.
Recently, JPMorgan analysts concluded that stablecoins are vulnerable during periods of extensive turbulence in the cryptocurrency market, potentially destabilizing the global financial system.
Lobban also pointed out that in the past year, many major international banks, broker-dealers, and asset management firms have been engaging with controlled or public blockchains. Some have even ventured into pilot projects to explore the potential of this technology. Lobban revealed that numerous financial institutions are using JPMorgan's Onyx blockchain platform for asset tokenization. He highlighted that smart contracts enable clients to precisely coordinate the terms of their transactions and ensure timely fund transfers.
However, Lobban mentioned that the enthusiasm of the bank's clients for cryptocurrencies has significantly waned. Some are hesitant to enter the cryptocurrency space, while others intend to defer this matter to more opportune times. He attributed this shift in sentiment to a series of cryptocurrency company bankruptcies last year. In his view, the era of massive returns from Bitcoin investments is drawing to a close.
Recently, JPMorgan analysts concluded that stablecoins are vulnerable during periods of extensive turbulence in the cryptocurrency market, potentially destabilizing the global financial system.
