The new product automates end-to-end cash settlement processes and guarantee transfers, eliminating manual intermediation at the collateral level to coordinate the operation of multiple systems.

The international bank JPMorgan, together with the company Baton Systems, developed a solution that allows the settlement and almost instantaneous transfer of guarantees to multiple clearing houses, which is backed with Blockchain technology.


 According to an official statement published by the company, this Blockchain solution for derivatives accelerates cash settlement processes and guarantee transfers, eliminating manual intermediation in the collateral process to coordinate the operation of multiple systems and reports.

The head of global compensation and business cost management operations, Anthony Fraser, said that this technology reduces the time needed for collateral processes, taking it from hours to almost instantaneous lapses, resulting in much faster payments and more accurate reports for all parties involved in the operation.

For his part, the CEO and founder of Baton Systems, Arjun Jayaram, commented:

“Our collaboration with JPMorgan accelerates the movement of assets. This is a truly innovative solution that eliminates the need for manual intervention in the collateral process by integrating with other systems.”

Improving systems

Although it is not very clear if this new system is integrated with the JPMorgan Blockchain network, Quorum, the new product supports other systems managed by the banking entity.

The statement reads:

“By integrating with the internal patented system used by JPMorgan to automate and synchronize existing business processes, the solution eliminates the need to coordinate multiple systems, reports and spreadsheets.”

The end-to-end automation resulting from the margins and guarantees workflows, provides complete visibility of the asset flows between the banking entity and the clearing houses, providing data for audits and sending notifications in real time, reducing the need for Pre-finance payments under the current market infrastructure.

According to the executives of JPMorgan, this new solution is now available to be implemented by all derivative companies that wish to support their operations with this technology, which would result in notable improvements at the operational level in view of what many operating platforms offer nowadays.

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