“We Are Big Believers In Ethereum”, Says J.P.Morgan As It Launches Quorum Blockchain To Tokenize Gold Bars
Wall Street banking giant J.P. Morgan Chase & Co (JPM) will employ Quorum, an enterprise blockchain solution built on top of Ethereum, to tokenize gold bars. The smart contracts for the gold bar will be embedded in Quorum to enable fractional ownership.
Digitizing will allow gold miners to earn larger premiums on global markets. Since the tokenized gold bars will be governed by smart contracts, the need for a costly intermediary such as a broker or exchange to buy and sell is the bars has been eliminated. J.P. Morgan’s head of blockchain initiatives, Umar Farooq, was quoted by Financial Review:
“We are the only financial player that owns the entire stack, from the application to the protocol. We are big believers in Ethereum. They wrap a gold bar into a tamper-proof case electronically tagged, and they can track the gold bar from the mine to end point – with the use case being, if you know it’s a socially responsible mine, someone will be willing to pay a higher spread on that gold versus if you don’t know where it comes from. Diamonds is another example.”
J.P. Morgan further plans to embed blockchain technology across the value chain with the aid of Quorum. Along with tokenization, Quorum is being considered for custody, capital markets issuances and secondary markets.
JPMorgan is amongst the world’s most valuable bank by market capitalization, earning such a big account is a very big plus for the blockchain technology. The platform will aid the New-York based bank to explore all the potentials available in the blockchain, especially the ones which could eliminate unnecessary maintenance costs and harness the comparative advantages of smart contracts into their daily business.
Developed by JPMorgan’s partnership with Ethereum Enterprise Alliance, the Quorum blockchain’s usability in a private blockchain installation was attained using battle-tested technology from Core OS.
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