JPMorgan Tests Blockchain System for Tracking Cars

Asia Blockchain Review
December 4, 2019

JPMorgan’s wholesale car financing arm is seeking a patent for its blockchain-based system for car inventory tracking. A distributed ledger-based version of floorplan lending will be used to allow car dealers to borrow against their retail inventory. 

The bank aims to use blockchain technology to help with auditing the inventory by tying the vehicle identity number (VIN) of each car to a blockchain.

Blockchain Saves Costs for Car Financing

Kevin Point, head of research and development at Chase Auto, has explained how blockchain technology can benefit car financing, stating:

“The floorplan lending process involves periodically doing a physical inspection or audit of all the inventory on the dealership’s lot. That means that a human being actually travels to the dealership, identifies the vehicles and then reconciles that inventory, if the loan’s outstanding, on both the dealer’s and the bank’s accounting system.”

Since the number of cars on floorplan lines of credit is massive, using blockchain to track them on a distributed ledger “will achieve cost savings over time,” Point concluded. “We believe these could be significant on an industry-wide basis.” 

Preventing “Double Flooring” Using DLT

JPMorgan is testing a pilot with dealership partners and speaking to automakers about the blockchain-based system, according to Christine Moy, blockchain lead at JPMorgan.  

Moy said the system “will benefit the vehicular and equipment industry at large.” She added that the DLT system can prevent “double flooring”—an illegal practice where a single vehicle is used as collateral for more than one loan.

“This is when accidentally (or fraudulently) a dealership may pledge one vehicle as collateral for one floorplan contract to one bank, but also pledge the same collateral for another floorplan contract with another bank,” Moy added.

Source: www.pymnts.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Expert Insights On The Asian Crypto Market
    Trescon hosted its first virtual edition of the popular World Blockchain Summit (WBS) series on Thur...

    August 11, 2020

    Digix Partners with Axie Infinity In Gaming
    The world’s first asset-backed digital gold token, Digix has partnered with Axie Infinity on a digit...

    August 11, 2020

    Distributed Ledger in Education: UCSI Explores
    Asia Blockchain Review had the opportunity to chat with the director of ICSDI at UCSI on the whole d...

    August 11, 2020

    Mainstreaming Of Cryptocurrency Investments? An Exploration
    While the security and the regulation is well chronicled. The big question that needs to be answered...

    August 10, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us