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JPMorgan Shortlists Three Companies With Potential to Deliver BaaS Solutions

JPMorgan Chase & Co., America’s multinational investment bank and financial services company, and the sixth largest bank in the world by total assets, in September, had attracted over 76 banks to join its blockchain based financial application. They are now looking forward to streamlining the firm’s global payments process by reducing the delays in transactions.

They reportedly believe that there are three companies with the potential to deliver blockchain-as-a-service to probable investors. Sterling Auty, JPMorgan’s software equity research analyst in a note to the bank’s clients, said,

Investors should be looking to identify where the opportunity to replace a middleman is the biggest, or where trust is needed where none exists or what companies are the best positioned to offer blockchain as a service.

The three companies as suggested by the banking giant are Akamai, a US-based content delivery network and cloud service provider, DocuSign, a US-based electronic signature technology provider and digital transaction management services and Ellie Mae, another American software company that manages 35% of all U.S. mortgage applications. Amongst these, JPMorgan believes that Akamai has an “overweight” rating which will be of consequence when it comes to BaaS solutions. DocuSign which could shift to a decentralized platform was also tagged by JPMorgan as “overweight” and was marked for their capacity to leverage blockchains, both public and private. Ellie Mae, however, was labelled as underweight, with the observation that real estate would be the most important use for their technology.

About Akamai, Auty added,

While there are a number of companies that have blockchain technology, IBM as one example, we believe the sizeable Akamai network is an inherent advantage in running a distributed ledger in blockchain.

With regards to Ellie Mae, he noted,

Utilizing blockchain to manage the entire mortgage process could bring trust amongs parties and use of smart contracts could help automate various tasks (inspection, income/emplyment verification).

However, it is only a matter of time, that will confirm whether this hunch by JPMorgan is correct, though the fact that it has handpicked them as companies with the potential to deliver should give them something to think about.