JP Morgan seems to be constructive on blockchain industry ever since Mr Oliver Harris has taken over the role as head of the crypto-assets strategy in esteemed investment banking company. Daniel Pinto, former fixed-income trader and co-president of JP Morgan Chase, told in a recent conversation with CNBC that they were looking ahead for the space of virtual currencies and blockchain technology.

On the JP Morgan’s application of patent, the U.S. Patent & Trademark Office (USPTO) summarizes a method whereby users on a distributed network such as a blockchain can tokenize assets and trade these virtual depository receipts.

JP Morgan’s new patent will allow investors to turn their assets on the stock market into tokens, or “virtual receipts.” IPOs (initial public offerings) are the process of raising funds through companies begins to sell stock to the public.

While the virtual receipts would be allowed to trade and redeem almost like an ICO token. The patent explicitly states that the tokens will exist on a “blockchain-based distributed ledger.”

SEC stated in the recent past to clarify about the regulations on ICOs as these assets would be treated as securities, just as ICO tokens are. And the patent describing their new blockchain application was made public today. This time, the firm has plans to handle IPOs in much same the way that ICOs currently operate.