JPMorgan has been in the news for criticizing the crypto space for quite some time now. But looking at the recent developments it seems that the banking giant has recently reconsidered their relationship with the cryptocurrency space. It has just come out that JPMorgan is set to unveil gold bars as a tokenized asset on their enterprise blockchain network built on Ethereum, “Quorum.”
JPMorgan’s Head of Blockchain Initiatives – Umar Farooq, recently said in an interview that the banking giant is working towards ‘tokenizing’ gold bars on the Ethereum network. As the gold bars will be represented on the Ethereum network, this will bring an opportunity for more-sustainable miners to earn a premium on the global market.
In his interview to the Financial review earlier Farooq added “JPMorgan is the only financial player that owns the entire stack, from the application to the protocol. Tokenization of existing commodities is something that is going to be hot in the financial world.”
The firm will wrap the gold bar into a tamper-proof case electronically tagged which allows them to track the gold bar from the mine to endpoint. The benefit of this is that if you know the gold is socially responsible mined, someone will be willing to pay a higher spread on that gold compared to gold which you have no idea from where it comes from.
Tokenized securities have come out to be the new hot topics of the crypto and blockchain industry at the moment. Ethereum seems the best poised to represent this growing demand of asset class due to its Ethereum Enterprise Alliance, which Mr. Farooq mentioned as one of the reasons for Quorum choosing Ethereum. A few of the community members have even begun to develop their own token standards on Ethereum in order to differentiate tokenized securities from other tokens.
The news that the largest bank in the United States – JPMorgan, will be using Ethereum to power its own enterprise blockchain marks an indicator in the direction of what’s coming in the future. Real world assets being tokenized and represented on the Ethereum network.
What do you guys think? Is tokenizing the real world assets the future of the crypto and financial industry? Let us know in the comments below.