Earlier on Friday 20th April an announcement was made by the National Bank of Canada (NBC), which reveals that the bank and the company, J.P. Morgan have together issued a $150 million one-year floating-rate Yankee certificate of deposit, which would be utilized towards implementing the blockchain technology.
As per the banking group, this blockchain test includes the parties following the execution of the genuine exchange through a debt issuance application created by J.P. Morgan that functions on the Quorum, an open-source variation of the Ethereum blockchain, particularly intended to address the issues of budgetary markets participants.
The statement issued by the National Bank of Canada (NBC) reads as follows, “This new blockchain debt issuance application will make it possible to combine functions over the complete deficit transaction cycle, which includes the creation, distribution, application, settlement, interest rates and maturity payments. This unique partnership between two high profile companies records an extraordinary advancement of implementing blockchain technology with real financial markets applications.”
The Senior Vice-President of Artificial Intelligence, Venture Capital, and Blockchain at NBC, David Furlong also shared some more details regarding the test, which reads as follows:
“The financial services industry can undergo some major changes through the implementation of blockchain technologies. National Bank of Canada is delighted to announce a partnership with J.P. Morgan for the purpose of testing blockchain technology in the context of a Yankee certificate of deposit issuance. This partnership presents us with a rare and unique opportunity to learn more about the revolutionary technology. National Bank of Canada will continue conducting experiments in the future and will continue to seek for innovative ways by which we can present great value to our partners.”
Christine Moy, Blockchain Program Lead at JPMorgan, also gave a statement regarding this topic, which says:
“One of the main purposes of J.P. Morgan’s blockchain program is to find out how the technology could possibly add value, improve efficiency while also presenting a better experience for our clients across the financial markets value chain. This is a unique case of how J.P. Morgan utilized our joined abilities in capital markets and blockchain innovation, conveying results to a diverse range of customers. We are really keen on conducting experiments for exploring blockchain-empowered capital market applications, to know how these kinds of transformative opportunities can profit our customers and partners, and how cooperating on open source innovation like Quorum can empower and quicken this progress.”
NBC also revealed that Goldman Sachs Asset Management, Pfizer, and Western Asset, a Legg Mason company, were amongst the many investors in the Yankee certificate of deposit.