JPMorgan Files Patent For DLT Based Virtual Receipt Management
JPMorgan Chase & Co, the largest bank in the US managing $2.54 trillion assets, has made a patent filing for a system that uses blockchain for the efficient management of virtual receipts backed by bonds or any other kind of assets.
The patent filing titled “Systems and methods for management of asset or obligation-backed virtual receipts on a distributed system,” published yesterday by the US Patent and Trademark Office (USPTO), describes a unique public blockchain-based method for the management of virtual receipts in token format.
The patent document refers Virtual Depositary Receipts, or “Virtual Receipts” as “asset or obligation-backed electronic tokens.” The proposed method suggests the use of distributed ledger technology (DLT) to link “an underlying asset or obligation with its digital representation on a distributed system for the purposes of ownership tracking and transfer”.
Notably, JPMorgan CEO Jamie Dimon had stated that cryptocurrencies are “worth nothing” and called Bitcoin a bubble. Dimon is also infamous for saying that cryptocurrency investors “will pay the price for […….] one day.”
Notably, in the second quarter of 2018, JPMorgan filed a patent for bank settlements (intra- and inter-bank), based on blockchain technology. However, it did not surprise the market as the behavior is similar to other banks, which are willing to use blockchain technology to improve their efficiency, but averse to cryptocurrencies as it threatens their business model.