Major financial firms ramp up blockchain activities ahead of 2024
Big players in the financial industry, including JPMorgan and HSBC, are stepping up their efforts in blockchain technology, pushing for the adoption of distributed ledger technology (DLT) in traditional finance. This move comes several months before 2024, indicating an acceleration in the implementation of blockchain.
Recent developments in November
In November, major financial institutions such as JPMorgan and HSBC saw increased activity in blockchain-related projects. JPMorgan executed its first decentralized finance (DeFi) trade on a public blockchain on November 3. On November 10, the company introduced programmable payments for its institutional blockchain platform, JPM Coin. Additionally, JPMorgan Chase and Apollo executives announced plans for a tokenized enterprise mainnet on November 28.
Similarly, HSBC has been making moves in the blockchain space. On November 1, HSBC and Ant Group tested tokenized deposits under the supervision of the Hong Kong Monetary Authority. HSBC also partnered with Ripple-owned tech firm Metaco on November 8 to hold tokenized securities on its new custody platform.
DLT gaining traction and overcoming skepticism
The interest and involvement of major financial companies demonstrate that the potential of DLT is gaining momentum and surpassing previous skepticism. Sandy Kaul, an executive at asset manager Franklin Templeton, stated in a Bloomberg report that the "adoption of the technology is actually accelerating very quickly." Kaul also highlighted that a pathway to re-engineering the global financial markets is becoming visible for the first time.
Franklin Templeton vying for a Bitcoin ETF
Franklin Templeton, along with other asset managers, is actively pursuing a Bitcoin exchange-traded fund (ETF). The firm submitted an application for a spot Bitcoin ETF with the United States Securities and Exchange Commission (SEC) on September 12.
Choosing different approaches
While some financial institutions are making significant strides in blockchain, others are taking a more cautious approach. Alex Holmes, CEO of MoneyGram, revealed in an interview with Bloomberg that only about 20 of their employees are exclusively dedicated to blockchain efforts. Holmes explained that their level of commitment aligns with the expected revenue and profitability.
Source: The Guardian (modified)
