JPMorgan Chase & Co.’s digital currency, JPM Coin, now processes daily transactions valued at $1 billion, as disclosed by Takis Georgakopoulos, the Global Head of Payments.
During a conversation with Bloomberg Television, Georgakopoulos stated that the predominant transactions of JPM Coin are in US dollars. He also underscored the bank’s dedication to broadening its application.
JPMorgan Looks to Accelerate Cross-Border Settlements with JPM Coin
JPMorgan Chase & Co.’s digital currency provides a streamlined and secure method for its wholesale clientele to make payments in dollars and euros, utilizing a private blockchain platform.
Although the daily billion-dollar transaction volume is commendable, it pales in comparison to the colossal $10 trillion in US dollar transactions the bank manages every day.
JPMorgan’s blockchain endeavors don’t end with the JPM Coin. They have also delved into a blockchain-centric repo platform, highlighting their intent to embrace novel financial technologies.
Furthermore, J.P. Morgan is keenly examining the feasibility of a blockchain-backed deposit token designed for payments and settlements. This token aims to facilitate effortless inter-bank transfers, offering both consumers and institutions enhanced efficiency and ease.
“Next Step is to Create a Retail Version of That”
Takis Georgakopoulos expressed that the logical progression would be to contemplate a “retail variant, extending that efficiency directly to everyday consumers.”
Blockchain aficionados believe that the technology can deliver instantaneous transactions at a fraction of the cost of present-day financial mechanisms.
Nevertheless, the journey to achieve widespread acceptance and to operate at the same magnitude as current payment infrastructures is ongoing.
JPM Coin operates as a controlled system, serving dual purposes: as a conduit for payments and as a record for deposit accounts.
This system empowers affiliated J.P. Morgan clients to shuffle US Dollars they have deposited with the bank internally. Each JPM Coin holds a value equivalent to a single U.S. dollar.
Positioning itself as the inaugural cryptocurrency anchored by a major U.S. bank, JPM Coin is pivotal in enabling the swift transfer of funds and real-time payments.