Amid the struggles in the cryptocurrency market, recent reports have suggested that the world’s largest asset manager Blackrock, and financial giant JPMorgan might spark a massive bull run for the XRP price as they work simultaneously.
Blackrock, JPMorgan Move Might Affect XRP Price
According to the report, Forbes Senior Contributor, Billy Bambrough, highlighted that Blackrock and JPMorgan are purportedly laying the foundation for an impending surge in the cryptocurrency sector. The report further identified several collaborative cryptocurrency moves taken by the two financial powerhouse firms.
Bambrough pointed out a recent report that claims that the asset manager recently utilized JPMorgan’s Ethereum-based Onyx network and tokenized collateral service.
Blackrock reportedly used the network to tokenize shares from one of its financial market funds, which was later transferred to the London-based Barclays in an over-the-counter (OTC) derivatives trade.
Over-the-counter (OTC) derivative operations occur between two parties. However, the specifics of the order quantity, cost, and other information of Blockrock’s transactions with Barclays remain concealed from the public.
Following the report by Bambrough, it was revealed that Blackrock became the first Wall Street giant to make use of JPMorgan’s blockchain-based collateral settlement system. This was part of a move that Blackrock’s Chief Executive Officer Larry Fink, has stated will pave the way for the “next generation for markets.”
The Blackrock CEO’s previous statement in an annual letter to shareholders where he emphasized blockchain technology as “very important” in the past year was also mentioned in the report. Fink highlighted the role that blockchain technology plays in their financial operations.
Blockchain technology enables traditional assets to be “tokenized” on a public ledger, potentially simplifying and lowering the cost of transferring anything from stocks and bonds to real estate and alternative investments like art.
Due to this, Billy Bambrough believes that there will be a significant increase in the price of digital assets such as XRP, Bitcoin (BTC), and Ethereum (ETH) as a result of BlackRock and JPMorgan entering the cryptocurrency industry, considering their connections to the traditional market. In addition, Ripple is also aiming to establish the XRP Ledger as a crucial platform for the tokenization of real-world assets.
BlackRock using XRP would not doubt have an immense impact on the XRP price. An example of the kind of rally it could trigger is what happened back in June with Bitcoin when the asset manager announced it had filed for a Spot Bitcoin ETF.
Significance Of Blackrock’s Transaction Via JPMorgan Blockchain
So far, Blackrock’s partnering with JPMorgan marks a new milestone for the financial firm. Blackrock’s recent transaction via JPMorgan’s blockchain indicates a crucial contribution to the volume of the Ethereum-based network Onyx.
Additionally, the operation could unveil a new world of possibilities for established financial institutions which enables them to free up capital and boost efficiency across separate markets, as a spokesman from JPMorgan told Bloomberg.
JPMorgan’s Head of Trading Service Ed Bond, also stated that “institutions on the network can use a wider scope of assets to meet any collateral requirements they have on the back of trading.”