JPMorgan Plans To Rolls Out Its Own Crypto ‘JPM Coin’ In The Next Few Months

JPMorgan Plans To Rolls Out Its Own Crypto ‘JPM Coin’ In The Next Few Months

JPMorgan CEO Jamie Dimon although is famous for criticizing the Bitcoin, the investment bank lately is in news for exploring future opportunities in the blockchain as a main part of the financial ecosystem having its own cryptocurrency which would be called as the JPM Coin.

The token is said to have been designed by engineers at the bank and slated to be rolled out for trials in the coming few months, reported CNBC on 14th February. Under the trial, JPM Coin would be used for a small part of a transaction carried between clients of its wholesale payments unit. The financial institution is said to have moved more than $6 trillion on a regular basis as part of the wholesale payments unit, informed CNBC.

The JPMorgan’s blockchain lead, Umar Farooq, said that the new token would be beneficial in three main cases which include replacing wire transfers for international payments by big companies, reducing the settlement times to moments from days and providing instant settlement for securities issuance and replacing US dollars held abroad by subsidiaries of giant corporation though JPMorgan’s treasury services.

Money flow back and forth across the world in a large corporation said, Farooq. Can a subsidiary surely represent cash on the balance sheet of the enterprise without having to actually wire it to the unit? This is the only way the enterprises can consolidate their money and get great rates for it. The bank coin, JPM Coin, can be deployed for mobile payments as well, stated Farooq.

Farooq further added saying that most of the large enterprise as well as leading financial institutions are JPMorgan’s clients. The wide clientele of the bank is one of the reasons why it has decided to take a dig in the cryptocurrency.

Going beyond Quorum

Following the announcement, JPMorgan released as a FAQ document on February 14. According to the FAQ, the bank token would initially run on Quorum, the private version of Ethereum that the financial institutions developed in collaboration with EthLab. However, the token would not be restricted to the Quorum platform.

As stated in the FAQ, the JPM Coin would initially be issued on Quorum Blockchain and later it would be introduced to other platforms. The JPM Coin is being designed for all standard Blockchain networks, as per the FAQ.

Moreover, the bank token would not be restricted to representing the greenbacks. Later in the future, JPM Coin would be extended to other leading currencies. According to the FAQ, the product and technology capabilities are compatible with all the currencies.

The FAQ also suggests that the financial institution is likely to offer a cash-on-ledger service to approved blockchain enterprise. For instance, the JPM Coin, unlike other cryptocurrencies, will be an open-access cryptocurrency as well provide access to stable-coins like the USDC coin developed by Circle, where stablecoins can be mint or redeemed only by the exchange customers but they can be traded by anyone.