- JP Morgan introduces euro-based denominated transactions in addition to the existing dollar-based payment.
- Since its inception, JPM Coin has processed over $300 billion in transactions compared to the JPM overall businesses that have processed almost $10 trillion daily.
The crypto ecosystem is fast expanding as traditional financial systems explore possibilities to integrate blockchain technology and digital assets. JP Morgan Chase & Co is reportedly introducing a euro-based payment in addition to the already existing dollar-based payment for its corporate clients with the JPM coin. On Wednesday, Basak Toprak, JPMorgan’s head of Coin Systems for Europe, the Middle East, and Africa, announced that the Euro payment has gone live with the Germany-based industrial manufacturing giant Siemens AG performing the first transaction.
This is a huge step for the JPM coin, having processed over $300 billion in transactions since its inception in 2019. On a daily basis, the overall JPM businesses have recorded about $10 trillion in processed payments. The JPM coin is said to be very popular among large multinational companies that usually transfer funds between their J.P. Morgan accounts as well as other banks.
When announcing its dollar-denominated assets, the bank explained that the JPM coin is not necessarily money.
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.
JP Morgan Fast-Expanding in the Blockchain Industry
As the first bank to introduce its digital token for real-world use, JPM boasts its initiative operates around the clock and also executes payment instantly compared to traditional banks. The bank had disclosed earlier that it would use blockchain to send money across borders in addition to using digital coins to settle payments among corporate clients. Last year, the Central Bank of Bahrain (CBB) announced its decision to leverage the JPM Coin system to initiate real-time payment for Aluminium Bahrain (ALBA) to benefit its counterparties in the United States.
His Excellency the Governor of the Central Bank of Bahrain, Rasheed Al Maraj commented:
We at the Central Bank of Bahrain are extremely pleased to announce the success of this test which aligns with our vision and strategy to continually develop and enrich the capabilities extended to the stakeholders within our financial services sector in the Kingdom using advanced and leading emerging technologies. Through our work with ALBA, Bank ABC and Onyx by JP Morgan, we aspire to address and eliminate the inefficiencies and pain-points which exist today in the traditional cross-border payments arena.
Just recently, it partnered with six Indian banks to come up with a blockchain-based platform for interbank dollar transactions. The banks include HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, and IndusInd Bank.
Kaustubh Kulkarni, the senior country officer at JP Morgan explains that transactions take up to several hours under the current interbank settlement system in addition to its unavailability on Saturdays, and Sundays in public holidays. Interestingly, its platform enables banks to settle payments 24/7.
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The Onyx blockchain-based platform was launched in 2020 and seeks to improve wholesale payment transactions.