American investment-banking giant JPMorgan Chase is trying to get a patent on a distributed system that uses blockchain technology to issue virtual Depository receipts, which are very similar to token-ICO.

Yesterday, the Bureau of patents and trademarks USA (USPTO) published a patent application that was filed by JPMorgan in January. It describes the method by which users of a distributed network can tokenservice assets and make a trade in a virtual Depository receipts.

To create a security token, the initiator, who may be the owner of the asset or broker must provide the asset entrusting it to a qualified Trustee, who then authorizes a virtual receipt for the Deposit assets.

The described virtual Depository receipt is essentially will be a kind of security token, which is regulated by securities Commission and exchange Commission (SEC) or the local competent regulatory body that oversees securities. And this, in turn, will strictly limit how and where you can trade these tokens.

In the patent application also notes that the tokens can represent a virtual receipts of secured obligations, better known as debt.

Depending on the nature of the asset the holder of the token will also be able to redeem the receipt for the underlying asset, transferring it to the Trustee which then will repay the tokens.

According to JPMorgan, the use of the proposed system will allow the company to conduct an initial public offering (IPO) in the blockchain environment. This is partly reminiscent of the primary offering of coins, but it is unlikely that the banking giant decides to use the term ICO.

It should be noted that JPMorgan is not the first time thinks about the creation of platforms for the issuance of debt on the blockchain. Earlier this year, the Bank collaborated with the National Bank of Canada and a group of other companies to mimic the issue of the certificate of Deposit (CD) Yankee $150 million on the blockchain the platform Quorum, built on the Ethereum — in parallel with the actual production of a CD the traditional way.

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