麻豆传媒

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
麻豆传媒
Leading the Way

Global 麻豆传媒 Finance News and Commentary
≔ Menu
麻豆传媒
Leading the Way

Global 麻豆传媒 Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Industry news
  3. Fidelity International goes live on J.P. Morgan鈥檚 Tokenized Collateral Network
Industry news

Fidelity International goes live on J.P. Morgan鈥檚 Tokenized Collateral Network


12 June 2024 US
Reporter: Carmella Haswell

Generic business image for news article
Image: Picture_Office/stock.adobe.com
Investment management services firm Fidelity International has gone live on J.P. Morgan鈥檚 Tokenized Collateral Network (TCN).

TCN sits on J.P. Morgan鈥檚 Onyx Digital Assets, and operates as a private blockchain-based platform, which is used for tokenised asset movements including collateral settlement.

Fidelity International has tokenised the representation of shares in Fidelity International money market funds (MMF) through the TCN.

The ability to post MMF shares as collateral directly without first redeeming to cash, offers the prospect of greater efficiency and stability in times of market stress, the firms say.

TCN has started with the tokenisation of money market shares, with a view to expanding across equities, fixed income and a range of asset classes.

According to J.P. Morgan, the ability to tokenise assets and use them under both title transfer and pledge structures, outside of any limiting market operating hours, has the potential to create new opportunities in the collateral market.

Commenting on the news Stephen Whyman, head of Debt Capital Markets at Fidelity International, says: 鈥淭okenising our money market fund shares to use as collateral is an important and natural first step in scaling our adoption of this technology.

鈥淭he benefits to our clients and the wider financial system are clear 鈥 in particular, the improved efficiency in delivering margin requirements and reduction in transaction costs and operational risk.鈥

Harpreet Bains, managing director and head of trading services digital at J.P. Morgan, adds: 鈥淕rowing the number of participants on TCN was a key objective from the outset, and we鈥檙e delighted to welcome Fidelity International to the network.

鈥淲e believe TCN has the potential to transform collateral markets, allowing our clients to extract greater utility from existing asset pools, and broadening the network is the next important step on that journey.鈥
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
Advertisement
Subscribe today
Knowledge base

Companies in this article
→ J.P. Morgan

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Collateral

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →