JP Morgan to start euro-denominated trading with digital currency “JPM Coin”

1 year ago 108

JPM Coin Implements First Euro-Denominated Payment

JP Morgan, a major US investment bank, has started euro-denominated transactions for corporate customers with its own blockchain-based digital currency “JPM Coin” on the 21st. Bloomberg reported.

Basak Toprak, head of coin systems for Europe, the Middle East and Africa at JP Morgan, said German tech giant Siemens has made the first euro-denominated payment on the JPM coin platform.

Launched in 2019, JPM Coin is a digital currency that specializes in business-to-business payments, not personal payments.

JPM Coin, which is pegged to legal currency, is operated on a permissioned blockchain, and it is a system that allows corporate customers who have JPMorgan accounts to make quick payments.

JPMorgan institutional clients will be able to transfer funds and make payments on the JPM Coin blockchain instead of traditional payment methods. It is possible to make payments at high speed without being affected by general bank business hours.

Mr Toprak also said that making proper and quick payments increases the chances of institutional customers earning more interest income from their deposits.

JPM Coin has processed over 43 trillion yen ($300 billion) in transactions to date. It should be noted that J.P. Morgan’s overall payments business processes nearly ¥1,437 trillion ($10 trillion) daily, which is still very small by comparison.

Initiatives related to virtual currency

In addition to JPM Coin, JP Morgan is also starting initiatives in areas such as blockchain and crypto assets (virtual currencies).

In November 2022, the US Patent and Trademark Office acquired the trademark “JP Morgan Wallet” for virtual currency payment services using digital wallets.

In addition to credit cards and foreign exchange, it is expected to provide services such as virtual currency remittance, trading, settlement, and account management.

connection: JP Morgan Acquires Cryptocurrency Wallet Trademark

In November of the same year, the first DeFi (decentralized finance) transaction was also implemented. It used a modified version of the leading DeFi lending protocol Aave, deployed on the Polygon (MATIC) mainnet.

The deal comes as part of “Project Guardian,” launched by the Central Bank of Singapore/Monetary Authority (MAS) to explore the potential of DeFi.

connection: JP Morgan Acquires Cryptocurrency Wallet Trademark

BlackRock Bitcoin ETF Application

As for the trend of existing financial giants, US asset management giant BlackRock applied for Bitcoin (BTC) ETF on the 15th.

BlackRock announced in 2022 that it will partner with major U.S. cryptocurrency exchange Coinbase to provide institutional investors with Bitcoin trading and custody. The ETF filed this time says that Coinbase will be the custodian.

connection: What is an exchange traded trust “Bitcoin ETF”? | Why the application of BlackRock attracts attention

What is a Bitcoin ETF?

An Exchange Traded Fund that includes Bitcoin as an investment target. A mutual fund is a financial product in which money collected from investors is collected as a single fund and invested in stocks, bonds, etc. The investment results are distributed according to the amount invested by each investor. Among mutual funds, ETFs are listed on the stock exchange, so they can be bought and sold in the same way as stocks.

Cryptocurrency Glossary