TL;DR
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A few of JPMorgan’s programs are altering – however the finish result’s largely the identical with the JPMorgan’s Tokenized Collateral Community (TCN), which has large ‘McDonald’s Speedee Service System’ vibes.
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Monetary companies are nonetheless posting shares/shares as collateral. However the technique of doing so is now way more environment friendly, resulting in a drastic discount in value and time.
Full Story
Earlier than Wealthy and Maurice McDonald, there was no such factor as ‘quick’ meals.
The genius of the McDonald brothers was how they designed their ‘Speedee Service System,’ which made the preparation of every burger sooner and cheaper.
…positive, the meals itself was largely unchanged by the system. However the course of of making it turned far extra environment friendly.
One thing related is occurring over at JPMorgan, in that a few of its programs are altering – however the finish result’s largely the identical.
The change is available in JPMorgan’s Tokenized Collateral Community (TCN), which has large ‘McDonald’s Speedee Service System’ vibes.
Here is the essential gist of it:
When taking out loans, you might want to put up collateral (which is wealthy particular person discuss for ‘put down a deposit’).
And on the planet of conventional finance, large companies will usually use shares or shares as collateral, as a substitute of money.
…solely downside is, the programs supporting the switch of shares/shares aren’t precisely environment friendly.
What JPMorgan’s Tokenized Collateral Community lets these monetary companies do is:
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Lock their shares/shares up.
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Get blockchain primarily based tokens in return (the place 1 token = 1 share).
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Put up these ‘tokenized’ shares as collateral, utilizing blockchain expertise (which is WAY sooner and WAY cheaper than the outdated system).
So, very similar to a McDonald’s burger earlier than/after the ‘Speedee Service System’ was carried out: the top consequence is identical, however the course of is improved.
Monetary companies are nonetheless posting shares/shares as collateral.
However the technique of doing so is now way more environment friendly, resulting in a drastic discount in value and time.
Fairly neat how blockchain is seeping into even the stodgiest elements of the normal monetary world, no?
