JPM Coin is built on Quorum, which is a permissioned version of the Ethereum blockchain. It is designed to reduce the time and cost associated with traditional cross-border payments. By extending JPM Coin to support euro payments, JPMorgan is aiming to provide its clients with a faster and more cost-effective way to move money across borders.
Despite having a very small impact on JPMorgan’s payments operations, JPM Coin is a unique example of a live blockchain application that has been successfully launched by a large traditional bank. JPM Coin has processed approximately $300 billion in transactions since it first launched in 2019, compared to over $10 trillion in processed payments every day.
Large international corporations frequently use the JPM Coin to move money between their J.P. Accounts. According to the article, payments can be made to other bank clients or into Morgan accounts. The report also stated that some of those advantages include the capacity to initiate payments that are not yet due and payments that execute more swiftly than conventional transactions.
When launching its dollar-denominated digital currency, the bank stated in a blog post that “The JPM Coin isn’t money per se. It is a digital coin, representing United States dollars, held in designated accounts at J.P. Morgan Chase N.A. In short, a JPM Coin always has a value equivalent to one U.S. dollar. When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of U.S. dollars, reducing the typical settlement time.”
In February 2019, J.P. Morgan became the first major U.S. bank to launch its own digital token for real-world use, which is a blockchain-based cryptocurrency aimed at facilitating instant payment transfers between institutional accounts.
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