JPMorgan to use its Ethereum-based Quorum blockchain to tokenize gold

31 Oct, 2018
by Will Heasman
News
JPMorgan to use its Ethereum-based Quorum blockchain to tokenize gold

One of Wall Street's biggest players, JP Morgan, has announced plans to tokenize gold bullion upon its Quorum blockchain.

As reported back in May of this year, JPMorgan had applied for a patent for a distributed ledger built upon the Ethereum network, that ledger would be known as Quorum - a private blockchain designed to rehouse intra-bank payment records, replacing the legacy systems currently utilized.

However, it appears that Quorum will now be used to track and tokenize gold bars. The addition of this blockchain solution into the gold mining industry benefits sustainable miners who will be offered a premium for the responsibly sourced gold on global markets.

 

A report in Financial Review cites this move by JPMorgan as indicative of “new trading opportunities the disruptive technology [blockchain] will create over the coming decade”.

Speaking to the publication, Uma Farooq - JPMorgan's head of blockchain initiatives – tells of the nascent technology and the development of Quorum:

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

 Farooq further elaborated upon the process of tokenizing gold on the Quorum blockchain:

"They wrap a gold bar into a tamper-proof case electronically tagged, and they can track the gold bar from the mine to end point. Farooq justified the premium on global markets by stating the importance of socially responsible mining, “someone will be willing to pay a higher spread on that gold versus if you don't know where it comes from. Diamonds is another example.". He said.

Read more: JPMorgan seeks patent for blockchain payment system

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