JPMorgan Has Launched The JPM Coin

Recently, JPMorgan Chase & Co. launched a digital token to represent a fiat currency. As they announced the creation of JPM Coin, it was published in a news release, that JPM uses the popular blockchain technology to facilitate the transfer of payments between institutional clients. Fundamentally different from cryptocurrencies like Bitcoin, it is redeemable at a 1:1 ratio for fiat currency held by JPMorgan. As a part of the company’s plans, JPM Coin has evolved for the better.

What Is JPM Coin?

Accounted primarily as a tool to help the transfer of funds instantly, between some of JPMorgan’s clients, the digital currency is required for an exchange of money taking place between parties on the blockchain ledger. As a tool helping to complete that process efficiently than traditional settlements are what JPM Coin is all about. 

While JPM Coin is certainly not money in the ordinary sense, it is instead a digital token representing US dollars held by JPMorgan Chase maintaining a value equal to one US dollar. In the event of JPMorgan Chase deeming the launch of JPM Coin to be successful, the bank has plans also to use it with other fiat currencies shortly.

For clients using JPM Coin, it is sure to be relatively straightforward. The process includes depositing a sum in a particular account and receiving corresponding JPM Coins. These coins are then used to facilitate transactions across the blockchain network together with other JPMorgan clients. To close the procedure the clients are sure to redeem the JPM Coins with the bank and thereby receiving the US dollars at any time.

Even though JPM Coin is similar to many of the other stable coins, it also comes with crucial differences. For the first difference, as most of the stable coins are open access and available to the public, whereas JPM Coin is available only to specific JPMorgan clients with proper permissions. This is in particular that the clients must be institutional customers of the bank and the coin is designed to facilitate the transfer of funds with most stable coins seen as investment tools. And finally, it is the JPM Coin that is redeemable in fiat currency held by JP Morgan making it much more transparent than many stable coins such as Tether. Subsequently, JPMorgan Coin is meant to be more stable than most of the other stable coins.

What Does It Mean?

These developments mean that JPMorgan Coin has the reputation of one of the largest as well as the most stable banks in the world to the new as also uncertain financial technology. As fully compliant with the US and international banking laws and regulations, JPMorgan Chase is a reputed bank. Being a point of contention was regulatory oversight for long within the cryptocurrency space. Enticing some previously skeptical investors, the backing of a major bank is beginning to explore the digital currency space. Whereas JPM Coin is still in development.

What Comes Next? 

Currently, it is stated that JPM Coin is being used to facilitate payment mainly between institutional clients of JPMorgan Chase as in the long run, it intends to expand the program including other currencies. JPM Coin perhaps maybe eventually available to individual customers where the first program is from a major US bank helping JPM Coin bring digital currency transaction settlements to the mainstream financial world. Representing a change of heart is the development of JPM Coin for JPMorgan CEO Jamie Dimon who previously called Bitcoin a fraud.

JPMorgan Has Big Plans for Blockchain

Quorum, the distributed ledger venture of JPMorgan Chase recently hit the headlines as the head Amber Baldet was moving to start her own company whereas the departures have hardly put brakes on ambitious plans for the future. 

It was found as a post in Coindesk stating Quorum has amassed a tribal following among most of the developers. Christine Moy replacing Baldet detailed about the Quorum’s plans for the future in an interview with the publication. It has to be noted that the division into a separate company recently automated delivery of $150 million Yankee Certificate of deposit using ERC-20 tokens on the platform. This points out to investors receiving certificates upon deposit of the required cash with the successful execution of contracts just as the beginning.

Concluding The Discussion

Blockchain technology could be used to transform the world of securities settlements according to a study by consulting firm, Capgemini, these smart contracts is sure to bring down settlement times boosting demand for syndicated loan by5% to 6%.translatign to additional income are these figures between $2 billion to $ 7 billion annually. A more recent study by central banks in Europe have started the distributed ledger technology is sure to lead to the development of new securities.