JPMorgan plans to speed up its daily settlements by ten times in the next year by using the blockchain-based JPM Coin.
JPMorgan’s digital token, JPM Coin, is expected to handle around $10 billion in daily transactions in the next one to two years. This information comes from Umar Farooq, the bank’s Global Head of Financial Institution Payments.
JPMorgan’s JPM Coin Aims for Substantial Transaction Growth
JPMorgan’s digital token, JPM Coin, could see a significant increase in transactions, ranging from five to ten times its current volume in the next one to two years. Currently processing about $1 billion daily, Umar Farooq, the bank’s Global Head of Financial Institution Payments, expressed optimism about this growth during an interview at the Singapore FinTech Festival.
JPM Coin operates on a private blockchain network, handling dollar and euro-denominated payments for wholesale clients. Despite being one of the few operational blockchain applications by a major bank, it represents only a small fraction compared to JPMorgan’s daily processing of $10 trillion in US dollar transactions.
Blockchain technology advocates argue that it offers faster and more cost-effective payments compared to existing methods. However, the scalability of digital ledgers is yet to be tested on the same scale as traditional payment networks.
JPMorgan’s JPM Coin Innovates with Programmable Payments Feature
JPMorgan is making effective use of its JPM Coin in various applications, particularly within its blockchain-powered payment system called Onyx. The latest advancement involves introducing a new feature to JPM Coin, enabling programmable payments. This means clients can automate payments, setting up the system to handle financial responsibilities like overdue payments and margin calls.
Naveen Mallela, the global head of coin systems at Onyx, shared that Siemens, a Germany-based company, utilized JPMorgan’s JPM Coin system to establish its account for transfers, addressing potential funding gaps.
With this enhancement, JPM Coin allows clients to program their accounts, incorporating conditions to facilitate fund movements for covering overdue payments and margin calls.
This move towards programmability marks a significant achievement for digital currencies and tokenized money, opening doors for dynamic and event-driven infrastructure in the industry. It’s a crucial development for achieving real-time, automated, and programmable treasury operations.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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