As a seasoned analyst with over two decades of experience in the financial industry, I’ve witnessed the evolution of technology reshape the landscape of finance. The recent collaboration between Siemens AG and JPMorgan’s Onyx and SWIAT is yet another testament to this transformation.
In simpler terms, on Monday, international corporation Siemens AG announced they would use JPMorgan’s blockchain platform called Onyx and a private blockchain by SWIAT for issuing and settling digital versions of their commercial papers (debentures).
On September 13, Siemens sold €100,000 in digital securities that complied with the German Electronic Securities Act (eWpG). However, they redeemed these securities three days later. The transactions were facilitated on the Onyx network using the JPM Coin System for payment purposes, while the asset transfers were settled through the SWIAT network’s delivery-versus-payment (DvP) system.
The entire transaction was finished in 93 seconds, starting from when the trade was confirmed by both parties on the SWIAT platform to the moment the final settlement confirmation was sent to them, indicating that the asset and payment transfers had been successfully completed. DekaBank played a part as well, functioning as a regulated crypto securities registrar within the SWIAT network.
The transaction marked the start of Onyx and SWIAT collaborating to develop asset issuance products on blockchain rails for commercial banks. Their goal is to shorten value chains, increase transaction flexibility and speeds, and ultimately make financial transactions via blockchain rails scalable for commercial banks, the companies said.
Transactions involving JPM Coin have significantly increased following the introduction of programmability to their network. In fact, transactions amounting to billions of U.S. dollars were recorded on certain days, as mentioned by Umar Farooq, head of Onyx by JP Morgan, during a panel discussion at Consensus 2024 in May.
At a recent gathering at Georgetown University, JPMorgan CEO Jamie Dimon stated that they are likely among the larger entities making use of blockchain technology. However, he emphasized that it is essentially a type of database. It’s worth noting that Dimon, who has been vocal about his views, has on several occasions referred to cryptocurrencies as being equivalent to a “pet rock.
Jesse Hamilton contributed reporting to the story.
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2024-09-23 22:13