The commercial bank JPMorgan tested the Tokenized Collateral Network (TCN) system for tokenizing collateral, conducting a real transaction between the financial giants BlackRock and Barclays.
TCN converted shares of one of the investment funds into corresponding tokens, which were then used as collateral for an over-the-counter derivative deal between the two companies.
Such a mechanism greatly simplifies settlements due to the fact that tokenized assets can be used as collateral for transactions, which means that there is no need to physically sell them.
The testing of this system took place in the spring, but only now the first real transaction occurred, which showed fantastic results according to the bank’s management.