American financial holding JPMorgan Chase will use its network of Quorum on the basis of Ethereum for tokenization bars of gold.

Information publication Financial Review reports that the company is positioning this innovation as “the rate of new trading opportunities that technology will create in the next decade”. In addition, according to JPMorgan Chase, the possibility of tokenization gold assets will allow the miners to earn additional compensation.

Tokenization is the process by which the assets, in this case gold bullion, digitized and stored in a distributed registry. That this can be done on the blockchain Quorum, representatives of the company told the Sibos conference, held last week in Sydney. Tokenization of gold bars will make trade more transparent by eliminating various middlemen — exchanges or brokers. It will also reduce the size of the overheads and reduce risks.

Developed by JPMorgan Quorum platform uses smart contracts or computer algorithms to automate processes based on an established set of rules.

“We’re the only financial player who owns an entire ecosystem (approx. blockchain ecosystem), starting with application and ending with the Protocol”, — commented on the publication of Financial Review the head of Department on work with blockchain initiatives JPMorgan Umar Farooq (Umar Farooq).

It should be noted that with the JPMorgan headquarters in new York is considered one of the most expensive banks in the world. The total value of Bank assets is estimated at $2,534 trillion. JPMorgan has long been interested in the blockchain as a technology is able to eliminate unnecessary maintenance costs and improve the efficiency of doing business. The Quorum platform, the Bank developed jointly with the blockchain-Ethereum Enterprise Alliance consortium.

In may, JPMorgan filed a patent application for a blockchain system for interbank transactions. A distributed registry is to register all the payments passing between the banks directly. With the help of technology JPMorgan expects to accelerate and reduce the cost of calculations in real time.

In late summer holding CEO Jamie Dimon (Jamie Dimon) in an interview with the Harvard Business Review shared the opinion that the blockchain can and will be used to solve many problems.