JP Morgan is Launching a Cryptocurrency for Its Payments Business
JP Morgan is Launching a Cryptocurrency for Its Payments Business
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We are talking about the JPM Coin, the first cryptocurrency developed by a major US bank.

A digital token created by JP Morgan — one of US largest investment banks and financial services companies, headquartered in New York — to instantly settle transactions between clients of its wholesale payments business.

Its trials will start in a few months — and although only a small part of the bank’s payments will be carried out using the cryptocurrency in the beginning, it represents one of the first real-world applications of a digital currency in the banking industry.

How will it work?

Each JPM Coin will be redeemable for a single US dollar, much like stablecoins, so its value will not vary. The bank’s clients will receive the corresponding tokens after depositing dollars and may use them for a payment or purchase on the blockchain.

To what will it apply?

JP Morgan foresees three early applications for the JPM Coin:

  • To international payments for large corporate clients, currently being carried out through wire transfers between financial institutions on old networks.
  • For securities transactions — for instant settlements — avoiding the time gap between the settling of a transaction and the receiving of the payment for it.
  • To large corporations, who use the bank’s treasury services, replace the dollars hold in subsidiaries across the world.


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