JP Morgan has it’s own cryptocurrency

JP Morgan Chase will be the first major bank to embrace the crypto revolution in a significant way by issuing its own proprietary stable coin to speed up cross-border payments and gain other operating efficiencies, as well.

JP Morgan Chase moves over $6 trillion across the globe every single day for corporations that are clients of its wholesale payments business. It will now shift a tiny fraction of those transactions over to the “JPM Coin” in the next few months as part of a trial. This digital token has been created by the engineers at the back to instantly settle payments between clients.

The coin can be redeemed for a US dollar, so its value will largely remain stable, the bank revealed.

“As a globally regulated bank, we believe we have a unique opportunity to develop the capability in a responsible way with the oversight of our regulators,” said JPMorgan’s Head of digital treasury services and blockchain Umar Farooq.

JP Morgan said that its new coin, which will be going to be issued on it’s in house blockchain technology Quorum, was currently a prototype. The company plans to make the coin-operable on all the standard blockchain networks.

The head of JP Morgan: Umar Farooq,  blockchain projects, explained the apparent need and opportunity:

So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction. The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this.

Money sloshes back and forth all over the world in a large enterprise. Is there a way to ensure that a subsidiary can represent cash on the balance sheet without having to actually wire it to the unit? That way, they can consolidate their money and probably get better rates for it. Pretty much every big corporation is our client, and most of the major banks in the world are, too. Even if this was limited to JPM clients at the institutional level, it shouldn’t hold us back.

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