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This is proof of concept. This changes everything. The article talks about the company not being ready to use Blockchain to issue all it's bonds due to regulato

This is proof of concept. This changes everything. The article talks about the company not being ready to use Blockchain to issue all it's bonds due to regulatory questions that still need to be answered but , i suspect, it's only going to be years not decades when this will happen. This spells out big problems to the staff employees associated with Finance. Anyone in the Financial Industry should start getting ready for the big Finance disruption that's coming in the near future.

stanleydrew 9y ago
This is an honest question: who's jobs do we think are going to be replaced by issuing bonds on the blockchain? The people drafting the bond agreements?
- legolassexyman 9y ago
  The "jobs" this technology replaces were computerized in the 1960s and 1970s. The application of the blockchain only speeds up settlement because there is a single ledger between multiple parties.
  - subway 9y ago
    The blockchain also ups the level of auditability.
    - justonepost 9y ago
      Yep! A big deal. You can see the lineage of transactions and actually always know who owns what. Be good for stocks too, which are a total and complete nightmare when it comes to who owns what.
      - 52-6F-62 9y ago
        This is one of the things that really interests me. It's a tool to boost honesty in traditionally exploitable aspects of business. Hell, with something like that the public might be able to viably reduce financial regulation -- or rather preventative procedural bureaucracy -- because of the ability to trace business transactional practices.
  - atomical 9y ago
    You could do exactly the same thing with a centralized ledger and it would be faster and cheaper. The point of a blockchain is security and irreversible transactions.
    - tgjsrkghruksd 9y ago
      Yet it is a giant leap backwards for security and irreversible transactions are a deal-breaking bug in the real world of finance. Mistakes and frauds have to be unwound. "Finders keepers losers weepers" is a playground rule.
- WheelsAtLarge 9y ago
  1) Bond issuers have backends that they have to manage. Billions in legacy software and assets. By being able to unify the ledgers then that will reduce the need for them. So anyone involved in the backend will be affected, programmers, administrators, managers, clerks. They may not be gone but their numbers will be reduced. 2) Cost of financial instruments will be greatly reduced so companies will be more likely to do the work in house. The number of financial firms will be less therefore there will be less jobs in what is now the financial industry. New jobs expertise will be needed but current expertise are at risk. Middle men will be reduced. There will be a Google/Amazon type of player that will eat the industry world wide. 3)The cost of issuing debt will collapse so anyone involved in loans will be affected. There are many other ways that Blockchain will impact the industry but these are the ones I can think of right now. How long? Who knows. But it will be here faster than expected. For timeline, here's one to ponder. How has the cloud affected network admins in the last 10 years? The impact has been large yet it's only been a few years since it first started.
harryh 9y ago
This changes nothing. It was a publicity stunt that solved no actual problems and introduced tons of problems that didn't exist before. Except it didn't even do that because "regulators do not yet allow issuances via blockchain only, so we had to test it in parallel with the conventional issuance process." It was a no-op.
- legolassexyman 9y ago
  It's a big deal imo, but a major blow for Bitcoin, because it's nowhere to be seen. Have you ever purchased a bond? Ever wanted to sell one on the secondary market? Ever heard of the Securities Transfer Agents Medallion Program? You will if you try to trade bonds in the conventional way, which is a huge pain in the ass. There is a lot of room for improvement by implementing the blockchain.
  - harryh 9y ago
    What happens when I buy a bond and then I accidentally lose my private key?
    - legolassexyman 9y ago
      I don't think JP Morgan is going to give you the private key to your bond. This is a slightly more decentralized version of holding securities in street name. It's less painful than direct registration, it's publicly auditable, and faster to settle.
      - harryh 9y ago
        What happens when JP Morgan loses my private key? I mean, I hear you. I 100% get why people are interested. I just don't see why it has to be a blockchain vs a centralized database that DTCC controls access to.
        justonepost 9y ago
        Databases are notoriously insecure.

stanleydrew 9y ago

This is an honest question: who's jobs do we think are going to be replaced by issuing bonds on the blockchain? The people drafting the bond agreements?

legolassexyman 9y ago
The "jobs" this technology replaces were computerized in the 1960s and 1970s. The application of the blockchain only speeds up settlement because there is a single ledger between multiple parties.
- subway 9y ago
  The blockchain also ups the level of auditability.
  - justonepost 9y ago
    Yep! A big deal. You can see the lineage of transactions and actually always know who owns what. Be good for stocks too, which are a total and complete nightmare when it comes to who owns what.
    - 52-6F-62 9y ago
      This is one of the things that really interests me. It's a tool to boost honesty in traditionally exploitable aspects of business. Hell, with something like that the public might be able to viably reduce financial regulation -- or rather preventative procedural bureaucracy -- because of the ability to trace business transactional practices.
- atomical 9y ago
  You could do exactly the same thing with a centralized ledger and it would be faster and cheaper. The point of a blockchain is security and irreversible transactions.
  - tgjsrkghruksd 9y ago
    Yet it is a giant leap backwards for security and irreversible transactions are a deal-breaking bug in the real world of finance. Mistakes and frauds have to be unwound. "Finders keepers losers weepers" is a playground rule.
WheelsAtLarge 9y ago
1) Bond issuers have backends that they have to manage. Billions in legacy software and assets. By being able to unify the ledgers then that will reduce the need for them. So anyone involved in the backend will be affected, programmers, administrators, managers, clerks. They may not be gone but their numbers will be reduced. 2) Cost of financial instruments will be greatly reduced so companies will be more likely to do the work in house. The number of financial firms will be less therefore there will be less jobs in what is now the financial industry. New jobs expertise will be needed but current expertise are at risk. Middle men will be reduced. There will be a Google/Amazon type of player that will eat the industry world wide. 3)The cost of issuing debt will collapse so anyone involved in loans will be affected. There are many other ways that Blockchain will impact the industry but these are the ones I can think of right now. How long? Who knows. But it will be here faster than expected. For timeline, here's one to ponder. How has the cloud affected network admins in the last 10 years? The impact has been large yet it's only been a few years since it first started.

harryh 9y ago

This changes nothing. It was a publicity stunt that solved no actual problems and introduced tons of problems that didn't exist before. Except it didn't even do that because "regulators do not yet allow issuances via blockchain only, so we had to test it in parallel with the conventional issuance process." It was a no-op.

legolassexyman 9y ago
It's a big deal imo, but a major blow for Bitcoin, because it's nowhere to be seen. Have you ever purchased a bond? Ever wanted to sell one on the secondary market? Ever heard of the Securities Transfer Agents Medallion Program? You will if you try to trade bonds in the conventional way, which is a huge pain in the ass. There is a lot of room for improvement by implementing the blockchain.
- harryh 9y ago
  What happens when I buy a bond and then I accidentally lose my private key?
  - legolassexyman 9y ago
    I don't think JP Morgan is going to give you the private key to your bond. This is a slightly more decentralized version of holding securities in street name. It's less painful than direct registration, it's publicly auditable, and faster to settle.
    - harryh 9y ago
      What happens when JP Morgan loses my private key? I mean, I hear you. I 100% get why people are interested. I just don't see why it has to be a blockchain vs a centralized database that DTCC controls access to.
      - justonepost 9y ago
        Databases are notoriously insecure.