Siemens AG, a conglomerate based in Germany, was reportedly the first company to conduct euro-based transactions using JPM Coin.
JPMorgan, an investment bank in the United States, is extending the use of its blockchain project, JPM Coin, into the realm of traditional banking. The bank has introduced euro-based payments for its corporate clients by deploying its blockchain-based payment system, JPM Coin, as reported by Bloomberg on June 23.
Basak Toprak, who serves as the head of Coin Systems for Europe, Middle East, and Africa at JPMorgan, revealed that JPM Coin commenced euro transactions on June 21. Toprak further mentioned that Siemens AG, a conglomerate based in Germany, was the first to conduct a euro payment using the platform.
The introduced system allows large multinational corporations and other clients to instantly transfer euros to and from their JPMorgan accounts, providing a 24/7 capability. This improvement is significant compared to traditional banking transactions, which are typically limited to business hours.
Basak Toprak of JPMorgan highlighted the cost benefits of timely payments, stating that clients could potentially earn more interest income on their deposits by utilizing this system.
JPM Coin, introduced in 2019, is a functional blockchain application that offers an alternative payment infrastructure utilizing blockchain technology. Since its launch, JPMorgan has reportedly processed approximately $300 billion worth of transactions using JPM Coin. However, the bank has yet to expand the system to match its overall daily payment volumes, which are estimated to be around $10 trillion.
JPM Coin is a component of JPMorgan’s blockchain-based platform called Onyx Coin Systems. Launched in 2020, Onyx was designed to enhance the efficiency and reliability of wholesale payment transactions. As of April 2023, JPMorgan has reportedly processed nearly $700 billion in short-term loan transactions through the Onyx platform.
JPMorgan is facing a fine of $4 million from the U.S. Securities and Exchange Commission (SEC) for mishandling internal communications. The bank reportedly made a mistake in 2019, accidentally deleting approximately 47 million emails from its retail banking group that were dated between January 1 and April 23, 2018.
This incident violated U.S. securities laws, which mandate that financial institutions must retain business records for a minimum of three years.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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