Recently, JP Morgan Chase requested a patent for a blockchain registration system to manage digital assets.
In the past few months more financial institutions have become interested in blockchain-based development, and the possible applications for their business practices. From small startups to complete financial sectors, projects, patents and proposals have filled news feeds since the beginning of the year.
JP Morgan Chase is one institution that has entered into the blockchain-development game, to keep pace with the competition. Recently, they requested a patent for the creation of a blockchain-based system for the management of digital invoices backed by bonds or assets. The patent, registered with the United States Patent and Trademark Office (USPTO) under the title
“System and management of digital invoices backed by assets or bonds in a distributed ledger”
includes a new bill management methodology that may take the form of tokens. The document describes digital invoices as assets or “asset-backed tokens”.
The system will use distributed ledger technology “to link an underlying asset or obligation with its digital representation in a distributed system for the tracking and transfer of ownership”.
The banking entity has recently launched a blockchain investigation program led by Christine Moy. The use of technological advances, especially those related to digital financial technologies, has proven to be an endorsement for many businesses in the modern market. According to Moy,
“One of the mandates of the J.P. Morgan blockchain program is to identify how blockchain technology can create value, efficiency, and a better experience for our clients across the financial markets value chain (…) We look forward to exploring blockchain-enabled capital markets applications, how these types of transformative opportunities can benefit our clients and counterparts.”
Blockchain has already proven to be a useful tool when time, and consequently money saving, is what we are talking about, especially in the biggest financial scales, being technologically updated could mean the line between bankruptcy and financial success in the market of tomorrow.
by Samuel Larreal