October 1, 2022

J.P. Morgan uses blockchain to process loans from car dealers

J.P. Morgan uses blockchain to process loans from car dealers

According to a document filed by the J.P. Morgan Automobile Financing Division, the bank is interested in developing a distributed registry for lending. Thus, the organization will be able to provide car dealers with a revolving credit line secured by inventory.

JPMorgan launched a pilot system project onbased on Ethereum, which is already being tested at various car dealerships. The system uses a unique vehicle identification number assigned to each vehicle in the United States as a way to check vehicles at dealerships. The bank hopes its blockchain-based system will prevent the practice known as “double coverage.”

According to a Coindesk article, Christina Moi, head of blockchain at JPMorgan, said:

This works when by chance (or intentionally) the dealership can provide one vehicle as collateral in two banks at the same time.

</p>