American investment banking giant JPMorgan Chase is pursuing a patent for any distributed system that employs blockchain technology to issue virtual depository receipts that sound suspiciously like initial coin offering (ICO) tokens.
JPMorgan Wants to Host IPOs for a Blockchain
The?patent application, filed by JPMorgan in January and published by the U.S. Patent & Trademark Office (USPTO) on Thursday, outlines a method whereby users with a distributed network possibly blockchain can tokenize assets and trade these virtual depository receipts.
To make a security token, an originator like an asset owner or broker will encumber the asset by entrusting it towards qualified custodian, who will then authorize a virtual receipt for your deposited assets.
This virtual depository receipt would essentially even be a security token, regulated inside of the authority within the?U.S. Securities and Exchange Commission?(SEC) along with other local securities regulators. This designation would necessarily restrict where and how the tokens may be traded.
Depending to the nature from the asset, a token holder would likewise be able to redeem the receipt on your underlying asset by transferring it in the custodian, who could then cancel the tokens.
Notably, JPMorgan believes that particular use case for this purpose proposed method is to allow companies to hold on to initial public offerings (IPO) inside of a blockchain environment, essentially fulfilling the ultimate promise of the?initial coin offering, just about the most is doubtful both that your firm would ever acknowledge this fact or consider such token distribution events as ICOs.
Obligation-Backed Receipts
The patent also notes the fact that the tokens could represent obligation-backed virtual receipts, also known as debt equity.
This is not first time that JPMorgan has mulled constructing a platform to issue debt for a blockchain. Earlier this year, the firm?partnered?while using the National Bank of Canada including a group of other firms to simulate the issuance associated with a $150 million Yankee certificate of deposit (CD) on?Quorum,?JPMorgan’s Ethereum-based enterprise blockchain platform, in parallel by using an actual CD issued through conventional means.
“One of one’s mandates with the J.P. Morgan blockchain program is always to identify how blockchain technology may establish value, efficiency, including a better experience for the clients down the financial markets value chain,” said Christine Moy, JPMorgan’s blockchain program lead, when. ” Good quality to exploring blockchain-enabled capital markets applications, how all of these transformative opportunities can help our clients and counterparts.”
As CCN reported, while JPMorgan have been generally hostile toward cryptocurrencies, CEO Jamie Dimon, most remember, once routinely?identified bitcoin as a fraud,?the firm has frequent been a pacesetter in the development of enterprise blockchain applications, which look to capitalize the use of distributed ledger technology (DLT) at a private, permissioned environment, especially through its development and promotion of Quorum.
For some specialists blockchain technology like and develop applications, to offer good service, but despise bitcoin, some think it’s like going in a Ferrari by having an average of fifty km each and every hour, without simply because it is possible to get fast inside of a prudential time, blockchain-bitcoin technology developed together are Siamese that separate, are unaware of that it is possible achieve the goals with this particular revolutionary platform, time will tell who has the wisdom to be familiar with its benefits.