Recent rumours have stated that JPMorgan and the world's largest asset management Blackrock are working together to trigger a major bull run for the XRP price, despite the market's problems.
Price of #XRP Could Be Affected by #Blackrock and JPMorgan's Move
Billy Bambrough, a senior contributor to Forbes, cites the research as evidence that Blackrock and JPMorgan are preparing the ground for a cryptocurrency market boom. The paper goes on to detail the many cryptocurrency-related joint efforts between the two banking giants.
According to a source cited by Bambrough, the asset management recently used JPMorgan's Onyx network and tokenized collateral service, which are both based on Ethereum.
According to reports, Blackrock tokenized shares in one of its financial market funds on the network before sending them to Barclays in London for an OTC derivatives exchange.
Derivative transactions are conducted bilaterally, or between two parties, over the counter (OTC). However, the facts of Blockrock's interactions with Barclays, including order quantity, pricing, and other information, remain unknown to the general public.
Bambrough's study subsequently disclosed that Blackrock had used JPMorgan's blockchain-based collateral settlement system, making it the first major Wall Street firm to do so. The CEO of Blackrock, Larry Fink, has said that this action will usher in the "next generation for markets."
The article also mentions Blackrock CEO Larry Fink's prior comments in his annual letter to shareholders, in which he called blockchain technology "very important" in the previous year. Fink emphasised the importance of blockchain technology to the company's financial processes.
Traditional assets, like as equities, bonds, real estate, and alternative investments like art, can be "tokenized" on a public blockchain using blockchain technology, which might streamline and reduce the cost of asset transfers.
Since BlackRock and JPMorgan have strong ties to the traditional market, Billy Bambrough predicts that their entry into the cryptocurrency business would cause a huge price increase for digital assets like XRP, Bitcoin (BTC), and Ethereum (ETH). Ripple's XRP Ledger is intended to become an integral infrastructure for the tokenization of physical assets.
The price of $XRP would likely increase dramatically if BlackRock started adopting it. When the asset management revealed in June that it has applied for a Spot Bitcoin ETF, Bitcoin rallied significantly.
Blackrock's Transaction on JPMorgan's Blockchain and Its Importance
Blackrock has reached a new level of success with its partnership with JPMorgan. The recent transaction conducted by Blackrock via JPMorgan's blockchain suggests a significant addition to the traffic volume of Onyx, a network based on Ethereum.
A JPMorgan representative told Bloomberg that the operation has the potential to open up new opportunities for existing financial institutions by allowing them to release funds and increase efficiency across distinct marketplaces.
In addition, JPMorgan's Head of Trading Service Ed Bond said, "institutions on the network can use a wider scope of assets to meet any collateral requirements they have on the back of trading."
