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All aboard the blockchain bandwagon!
Blockchain is no longer on the fringes of fintech. Now, not a week goes by when another big name — in finance or tech – doesn’t announce its going big on blockchain.
The latest addition to the list is JPMorgan Chase, which is launching a trial project with Digital Asset Holdings, the startup run by the bank’s former head of commodities, Blythe Masters. The hope is that the technology could cut the cost and complexity of trading. Daniel Pinto, head of JPMorgan’s investment bank, told the The Financial times:
To sell a loan is a very cumbersome, time-consuming process; settlement can take weeks. [Exploring alternatives through blockchain] makes all the sense in the world; it’s easier and faster operationally, and you get fewer mistakes
News of JP Morgan’s latest tie-up comes just two days after big four auditor PWC partnered up startup Blockstream to the offer the technology to its clients. Specifically, it is looking at developing “sidechain” technology which allows companies to trade assets across multiple blockchains, using bitcoin as a “parent chain”.
As early movers elbow for dominance in this nascent industry, the big fight will likely be over patents. A recent article by Coin Telepgraph recently called out Bank of America for trying to monopolise the technology by filing 15 blockchain patents and drafting 20 more to be sent at the end of this month. Maybe it has the right idea.
With so many big hitters getting involved in blockchain, IP lawyers must be salivating.