The French banking giant BNP Paribas joins the onyx blockchain from JPMorgan

The French banking giant BNP Paribas joins the onyx blockchain from JPMorgan

The French banking giant BNP Paribas, the second largest banking group in Europe, is now acting digital tokens in the JPMorgan blockchain network for short-term wealth loans.

The blockchain system from JPMorgan, Onyx Digital Assets, was introduced in December 2020 and, according to a. So far, more than $ 300 billion of transactions with government bonds test report Financial Times.

At the moment Onyx is particularly concerned with the intraday repo market, which is estimated at around $ 12 trillion. Banks can lend tokenized US state bonds for a few days without the assets leaving their balance sheets. This helps to deal with liquidity requirements that were imposed on the institutes in the course of the 2008 financial crisis.

Borrows can then exchange the tokens for liquid cash and thus increase their available collateral for use on the derivative markets. Onyx is in JPMorgan's own token for digital payments, JPM, integrated Coindas about the same time as his blockchain platform.

shops in the approved blockchain network are handled by automated smart contracts. Onyx website boasts that the service enables an "almost immediate atomic exchange of collateral to cash". Repo transactions can "be traded, processed and due" within a day ", and the trade conditions can only be a few minutes.

Joe Bonnaud, Head of Engineering at BNP Paribas, said the Financial Times that the introduction of Onyx by the bank was more than just researching a proof of feasibility. The bank, which at the beginning of the year, managed assets of $ 612 billion, hopes that this step will help to use the blockchain if the market and operating life cycles of the markets develop. The competing Bank Goldman Sachs joined Onyx last June.

authorized (private) blockchains like Onyx differ greatly from Bitcoin and Ethereum, which are permissible (public) networks. Anyone with the right equipment can join and use-either as a validator or as a normal user-while JPmorgan alone checks who validates onyx transactions and ultimately decides which institutions can access their network.

BNP Paribas belongs to a consortium of French banks that experiment with an approved blockchain project of the French Central Bank and act as part of research on digital central bank currencies (CBDCS).

jpmorgan is deep in the blockchain and slowly penetrates

The takeover of blockchain by JPMorgan - even a watered down version of it - may be surprising for some if you consider the repeated criticism of CEO Jamie Dimon to Bitcoin over the years.

DIMON was one of the volume supporters of the "Blockchain, Not Bitcoin" mantras, which in 2018 became synonymous for cryptom degree institutional actors-and only described BTC as "cat gold" and "worthless" in October.

JPMorgan developed and sold the open source blockchain platform for companies Quorum in August 2020 for an unnecessary amount to the Ethereum giant Consensys. Quorum enables companies and other entities to provide their own blockchain networks that are validated by a single entity and hosted the Microsoft Azure Cloud Service. A year later, JPmorgan joined a financing round of Consensys of $ 65 million.

Despite Dimon's skepticism, JPMorgan began to offer its richest customers to offer its richest customers of half a dozen crypto funds, including a Bitcoin fund that is operated by the New York financial unit Nydig, four crypto funds from Grayscale Investment and one who managed by Osprey.

jpmorgan also made a “strategic investment” in the blockchain analysis company TRM Labs based in San Francisco. The company helps with the persecution of illegal crypto rivers to help with regulatory matters, similar to Chainalysis and Elliptic.

The bank even set up a funky lounge (also called Onyx) in the block chain-operated Metaverse-app Decentraland in the same month.

In terms of the next steps, Tyrone Lobban, head of Onyx, told reporters that JPmorgan explore institutional access to decentralized financial markets about Onyx, although no details have been announced.

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The contribution of French bank giant BNP Paribas joins JPMorgans Onyx Blockchain on is no financial advice.