JP Morgan Chase Bank to tokenize gold bars using Ethereum (ETH)

One of the largest banks in the United States, JP Morgan Chase Bank has announced its intentions to use its very own blockchain, Quorum to tokenize gold bars. Quorum is an Ethereum-based blockchain that has been developed to work as an enterprise protocol. The new venture will see the bank execute smart contracts while the same time, incorporate pre-program rules that will be used to automate them.

The development is seen as way of empowering miners to gain opportunities and earn a premium especially on the global market. Recently, Financial Review, a popular news website explained that this is “an indication of new trading opportunities the disruptive technology will create over the coming decade.” The head of blockchain initiatives, Umar Farooq is reported by the Financial review to have said:

“We are the only financial player that owns the entire stack, from the application to the protocol.”

JP Morgan Chase Bank is based in the New York and boast of assets in the excess of $2.534 trillion. The bank is said to be the largest in the world when market capitalization is considered. JP Morgan has in the recent months explored blockchain with an aim of eradication certain maintenance costs while harnessing the power of smart contracts.

The Quorum blockchain is a brain child of both JP Morgan and the Ethereum Enterprise Alliance. The tokenized assets will be easily transferable using distributed ledger technology. Besides, it eradicates the need to have middlemen (brokers) while laying the ground for direct transactions.