“We are big believers in Ethereum.”
They manifestly don’t like bitcoin and they don’t hide it, just the contrary. But the big, bad bankers appear to be very found of Ethereum.
JP Morgan has their own enterprise version of the Ethereum blockchain – known as Quorum – which has its own “smart contracts” ability, just like ETH.
“We are the only financial player that owns the entire stack, from the application to the protocol,”
said JP Morgan’s New York-based head of blockchain initiatives, Umar Farooq.
Mr Farooq said that in the medium term tokenisation of commodities could create new opportunities for global traders.
“They wrap a gold bar into a tamper-proof case electronically tagged, and they can track the gold bar from the mine to end point – with the use case being, if you know it’s a socially responsible mine, someone will be willing to pay a higher spread on that gold versus if you don’t know where it comes from. Diamonds is another example.”
Tokenization democratizes capital markets as breaking down large assets into smaller pieces increases liquidity, but crucially helps low-income investors buy stakes in assets they might not have been able to afford.