JPMorgan's JPM Coin Surpasses $1 Billion in Daily Transactions, Expanding Blockchain Influence

Published: October 26, 2023 at 6:05 am Updated: October 26, 2023 at 6:05 am

JPMorgan's JPM Coin Surpasses $1 Billion in Daily Transactions, Expanding Blockchain Influence

JPMorgan Chase & Co.’s digital token, JPM Coin, has achieved a milestone of processing $1 billion in daily transactions. The bank also plans to broaden the coin’s application, according to Global Head of Payments Takis Georgakopoulos.

“JPM Coin gets transacted on a daily basis mostly in US dollars, but we again intend to continue to expand that,” Georgakopoulos told Bloomberg.

JPM Coin functions as a vehicle for wholesale clients to make dollar and euro-denominated payments through a secure private blockchain network. It distinguishes itself as an example of blockchain technology’s practical application by a major financial institution.

Moreover, JPMorgan is actively exploring further blockchain-based innovations, including a blockchain-based repo application and the potential introduction of a digital deposit token to expedite cross-border settlements.

The banking giant envisions a retail-oriented digital deposit token as the next step in its journey to enhanced efficiency for consumer transactions. The drive towards blockchain technology underscores the belief among its proponents that it can deliver rapid, cost-effective payments. However, these digital ledgers are yet to be tested on the same scale as conventional payment networks.

Despite this impressive achievement, JPM Coin represents only a fraction of the colossal $10 trillion in daily US dollar transactions handled by the banking giant.

Two weeks ago, the UAE’s top financial institution, First Abu Dhabi Bank, announced its successful pilot testing with JPMorgan’s proprietary Coin Systems. The pilot testing explored the rising utility of blockchain technology and its potential to streamline and optimize global payment solutions.

JPMorgan also recently introduced a new blockchain system, the Tokenized Collateral Network (TCN). The system aims to simplify collateral settlement in the financial world.

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in Literary Studies and has an extensive background in writing about a wide range of topics including cybersecurity, travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Currently, Agne splits her time between Barcelona, Spain, and Vilnius, Lithuania, where she continues to pursue her passion for journalism. Contact her on [email protected].