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JPMorgan Chase & Co.’s digital token, JPM Coin, currently handles $1 billion worth of daily transactions, Global Head of Payments, Takis Georgakopoulos revealed.
Georgakopoulos revealed in an interview on Bloomberg Television that JPM Coin is currently transacted daily, primarily in US dollars. He further emphasized the bank’s commitment to expanding its usage.
JPMorgan Looks to Accelerate Cross-Border Settlements with JPM Coin
The banking giant’s digital token offers a secure and efficient way for wholesale clients to engage in dollar and euro-denominated payments through a private blockchain network.
While the billion-dollar daily transaction volume is a substantial achievement, it remains a modest fraction of the enormous $10 trillion in US dollar transactions that JPMorgan handles daily.
The banking giant’s foray into blockchain technology doesn’t stop at JPM Coin. The company has also ventured into a blockchain-based repo application, further demonstrating its commitment to exploring innovative financial solutions.
J.P. Morgan is actively exploring the potential of a blockchain-based deposit token for payments and settlements.
The deposit token is envisioned to enable seamless cross-bank money transfers, promising efficiency and convenience for consumers and institutions alike.
“Next Step is to Create a Retail Version of That”
Takis Georgakopoulos stated that the “next step in that journey is to think about how you can create a more retail version of that, so that you can bring that same efficiency to consumers.”
Blockchain technology enthusiasts argue that it has the potential to offer instantaneous payments at a lower cost compared to existing financial systems.
However, widespread adoption and testing at the same scale as traditional payment networks are still in progress.
JPM Coin is designed as a permissioned system serving as both a payment rail and deposit account ledger.
It allows participating J.P. Morgan clients to transfer US Dollars held on deposit with the bank within the system. Each JPM Coin is pegged to the value of one U.S. dollar.
As the first major cryptocurrency backed by a U.S. bank, JPM Coin plays a crucial role in facilitating the movement of liquidity funding and payments in real-time.
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