Home Business Central Banking JP Morgan Chase to create digital coin for faster transactions

JP Morgan Chase to create digital coin for faster transactions

JP Morgan Chase, the biggest US bank by assets, said it developed a prototype digital coin that its clients will be able to use for instant payment transfers through blockchain technology.

The JPM Coins can be transferred and instantly redeemed for the equivalent amount of US dollars when one client sends money to another over the blockchain network, which speeds up transactions, the bank said in a statement.

“JPM Coin is currently a prototype that will be tested with a small number of JP Morgan’s institutional clients, with plans to expand the pilot programme later this year,” Umar Farooq, head of Digital Treasury Services and Blockchain at JP Morgan, said. “JPM Coin is currently designed for business-to-business money movement flows, and because we are still in a testing phase, we don’t have plans to make this available to individuals at this stage.”

The move comes after JP Morgan’s chief executive Jamie Dimon famously criticised Bitcoin as “fraud” in 2017 and since then regretted his comments, and said that blockchain had viable uses for the financial industry.

“We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated,” the bank said in its statement.

The bank said it believes the JPM Coin can yield significant benefits for blockchain applications by reducing clients’ counterparty and settlement risk, decreasing capital requirements and enabling instant value transfer.

“As we move towards production we will actively engage our regulators to explain its design and solicit their feedback and any necessary approvals,” it said.

The JPM Coin will be issued on Quorum Blockchain, its in-house blockchain technology. The digital coin, which is currently a prototype, will be operable on all standard Blockchain networks.


Please enter your comment!
Please enter your name here

Must Read

Ethereum’s Long Term Chart Is Extremely Simple To Read

The weekly Ethereum chart, as opposed to the daily chart, is simple and concise. There are 2 simple...

US Department of Transportation Says Blockchain Has Many Applications For Unmanned Aircraft Systems (Drones)

Blockchain technology could assist with adjusting and improving current technical challenges in the expanding business of commercial drone delivery, said the US...

Security tokens, blockchain settlement draw interest from institutions: MIT Bitcoin Expo panel

Amid growing competition between providers, institutions in the traditional finance space are looking at blockchain as another way to offer value to...

Networking 2.0 at Blockchain Life 2020

Make hundreds of connections at Blockchain Life 2020 The 5th Blockchain Life 2020 returns to Moscow on April 22-23 at the unique media...

Irish drug dealer loses $57M bitcoin fortune after losing access codes

Irish Bitcoin drug dealer Clifton Collins, who has forfeited digital assets worth $57 million, has continued his trial...