February 15, 2019 – Banking behemoth J.P. Morgan Chase is planning to launch its own coin, a development that surprises many crypto enthusiasts who view the bank’s CEO as anti-crypto for so long.
In a report from CNBC, J.P. Morgan is launching a coin called “JPM Coin”. The bank, which is said to $6 trillion globally every day in its wholesale payments business, is reportedly putting some of those transactions on it. JPM Coin is created to be used for instant payment settlements between clients. The first focus is on international settlements. Next, according to Umar Farooq, head of blockchain at J.P. Morgan, is debt issuance on the blockchain (securities transactions). The third focus is for corporations that use J.P. Morgan’s treasury services around the world. (Read More: IBM Working With UnionBank for Blockchain-based Supply Chain Finance Solution)
The bank said this is in part of its preparation for a future where many essential business operations move to the blockchain. An immutable distributed ledger, using blockchain has been proven its usefulness in remittances as it can make transactions faster and cheaper.
“So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction,” – Umar Farooq, head of J.P. Morgan Blockchain Projects.
JPM Coins, however, can only be used by big institutional clients of J.P. Morgan, never retail investors, according to the news release. JPM Coin’s value is pegged to the dollar. It is backed by real fiat as clients need to deposit dollars to the bank before being used JPM Coins. (Read More: The Best Cryptocurrency Wallets to Use in the Philippines)