JPMorgan, a prominent financial institution, has achieved a significant milestone by processing over $1 billion. Moreover, they have processed this amount in daily transactions through its digital asset, JPM Coin.
JPMorgan’s Digital Asset, JPM Coin
The financial giant has achieved a position that strengthens JPM’s position as a pioneer in adopting blockchain technology. Furthermore, the company is planning further expansions that include the development of a retail-focused asset.
Currently, JPMorgan Coin is the foundation of the institution’s daily operations. Besides, this blockchain-based token primarily enables transactions in US dollars, and its use is growing continuously. Hence, the company’s Global Head of Payments, Takis Georgakopoulos, expressed the company’s commitment to expansion. He said, “JPM Coin gets transacted on a daily basis, mostly in UD dollars, but we again intend to continue to expand that.”
In a recent interview, Georgakopoulos highlighted the limitations of the existing payment system. To begin with, these limitations include slow processing, cut-off times, and delays in cross-border transactions. Also, he mentioned that the separation of money and information results in inabilities. Therefore, it is leading to change and challenges.
In addition to that, Georgakopoulos emphasized that money is fungible and highlighted the importance of digital currency in addressing these challenges. Besides, JPM Coin currently caters to institutional needs and is operating in a permissioned environment. The banks have the efficiency to create variations of digital deposits and distribute ledge technologies, offering advantages. Now, JPMorgan’s next step is to create a retail version of the asset to bring similar efficiencies to consumers.
JPMorgan aims to enhance cross-border payments and settlements through recent explorations of a new deposit token. The company is using blockchain technology to upgrade its systems. What’s more, the new deposit token, designed to serve as a deposit claim against commercial banks, will be available in other fiat currencies.
Notably, JPMorgan clarified that this token is not intended to replace stablecoins or to be used for purchasing cryptocurrencies. Conversely, it represents another step towards a better and more effective financial system. It is going to improve efficiencies and effectiveness in the financial domain.