Blythe Masters

Unfortunately, tools that transfer risk can also increase systemic risk if major counterparties fail to manage their own risk exposures properly. ”

I think the most important thing to understand about credit derivatives and their use at JPMorgan is they served a number of different purposes. First and foremost, they were a tool which initially was seen as being useful in managing the bank's own risk management challenges. ”

You have to abide by the regulations that the regulators insist on. This is not a philosophical divide - it's a fact of life. ”

A credit derivative, at its core, is actually a very simple concept... The simplest way to think of a credit derivative is it is analogous to insurance against the risk of a credit default by your counterparty, your business counterpart. ”

I spent my whole career thinking about risk, markets, infrastructure, and regulation. I had seen the financial crisis unfold, and I had seen the credit derivatives market get operationally ahead of itself, which resulted in systemic risk counterparty exposures. I began to believe that distributed ledgers had the capability to tackle that problem. ”

The platforms that are big, global, diversified, and both financial and physically enabled are competitively much better positioned than those which are not. ”

I would describe Hyperledger as a tremendous opportunity for collaboration for firms that range from gigantic commercial concerns all the way to the smallest, newest startups. It's a community of great intellectual depth and great commercial breadth, and as such, I think the opportunity to be part of that is a unique and enriching experience. ”

When asked to explain this space, I often ask people to forget pretty much everything you've heard about blockchains, crypto-currencies, and bitcoin, and instead dumb it down a lot and think about something no more complex or intimidating than good old-fashioned database technology. ”

The Hyperledger Project is gaining traction on a daily basis, displaying how vital this effort is in advancing distributed ledger technology. Uniting the industry to drive this initiative forward is paramount to the success of distributed ledger technology. ”

Blockchain technology, or distributed ledger technology, is just a way of using the modern sciences of encryption to enable entities to share a common infrastructure for database retention. ”