JPMorgan teams with Singapore’s DBS and Temasek to form a blockchain payment platform

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In this Aug. 16, 2019 photo, the logo for JPMorgan Chase & Co. appears above a trading post on the floor of the New York Stock Exchange in New York.

  • JPMorgan Chase announced it is teaming up with Singapore’s DBS Group and Temasek to form a blockchain payments platform.
  • The platform aims to ease frictions for cross-border payments, trade, and currency settlements.
  • The new company, dubbed Partior, will leverage blockchain technology and digitize M1 commercial money.
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JPMorgan Chase announced it is teaming up with Singapore’s DBS Group Holdings and Temasek Holdings to form a blockchain payments platform in a bid to ease cross-border payments, trade, and currency settlements.

The newly-established technology company, Partior, will leverage blockchain technology and digitize M1 commercial money, according to a statement Wednesday.

The platform will develop wholesale payment rails based on digitized commercial bank money to enable “atomic” or instantaneous settlement for various kinds of financial transactions, according to a statement.

“We are thrilled by the launch of Partior as it marks yet another milestone for JPMorgan and the industry – blockchain-based wholesale payments infrastructure where information and value can change hands around the world in a 24/7, frictionless way,” Takis Georgakopoulos, global head of wholesale payments at JPMorgan, said in a statement.

Partior will be designed to complement ongoing central bank digital currencies initiatives and use cases.

In the beginning, Partior will focus on facilitating flows primarily between Singapore-based banks in both US and Singapore dollars but will expand its service offerings to other markets and currencies.

Headquartered and listed in Singapore, DBS is a financial services group in Asia active in 18 markets.

Temasek, also based in Singapore with 11 global offices, is an investment company with a portfolio of $214 billion as of March 2020.

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JPMorgan is offering rich clients a way to ride the market waves created by massive investors

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People walk past a branch of Chase Bank in New York on Jan. 14, 2015.

JPMorgan Chase plans to offer its wealthy clients access to a stock strategy typically limited to institutional managers, offering them a chance to ride the wave created by a massive inflow of investors, Bloomberg first reported.

The bank has issued $15 million of structured notes that will allow clients to analyze trading patterns caused by big investors in the S&P 500 under the assumption that these whales may give rise to a new trend or create momentum, according to Bloomberg.

The notes offered by the bank, which carry maturities of up to five years, track the performance of the bank’s Kronos+ index that launched in December 2020, an SEC filing first viewed by Bloomberg showed. Kronos+ thus far has outperformed the benchmark.

According to the Bloomberg report, the gauge of the market tracked by the Kronos+ index hasn’t seen a loss since 2008, when it dropped 54%.

The newly available strategy is among the several that big-league clients can utilize to make sense of the market, especially during bouts of volatility.

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Bank stocks tumble as yields falling from 14-month high pause interest-income optimism

Wells Fargo ATM
A row of Wells Fargo ATMs.

  • Bank of America, Wells Fargo and other bank stocks fell Monday as the 10-year Treasury yield declined.
  • The closely watched yield tied to a range of lending programs fell about 5 basis points from a 14-month high.
  • The SPDR S&P Bank ETF lost 3% on Monday, marking a second straight loss.
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Bank stocks dropped Monday, with a widely watched bank ETF pulling further away from a 13-year high as borrowing costs tracked by the 10-year Treasury yield edged lower.

Bank stocks in recent sessions have been gaining as the 10-year Treasury yield and other long-dated yields rise while investors price in expectations of stronger inflation as the economy recovers from the COVID-19 pandemic. Banks seeking to lend money can see interest income improve when long-dated yields rise.

The 10-year yield, which is tied to lending programs including mortgages and auto loans, fell Monday by nearly 5 basis points to 1.68% from 1.73% on Friday when it reached its highest since January 2020.

Shares of Bank of America declined 2.6%, Citigroup fell 1.4%, JPMorgan shares of JPMorgan Chase lost 3.3% Wells Fargo declined by 1.7%.

Those moves also contributed to pressure on the SPDR S&P Bank ETF on Monday. It slumped 3% to mark a second straight loss. The index fell on Friday after the Federal Reserve decided to let a rule expire that relaxed capital requirements to encourage bank lending during the COVID-19 crisis. The rule change for the supplementary leverage ratio, or SLR, will expire as scheduled on March 31.

With the recent run higher in bank stocks, the SPDR S&P Bank ETF on March 12 logged its highest settlement since September 2007.

Meanwhile, the 10-year yield has climbed from around 0.9% since the start of 2021.

“While such a percentage increase in yield is dramatic from a percentage point of view the likely reality is that the move in yields may suggest that ‘things’ are indeed ‘getting better’ and pointing toward re-openings in areas of the US economy that have been shuttered or near shuttered for much of the duration since the rise of the pandemic last year,” wrote John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, in a note Monday.

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