American multinational investment bank JP Morgan has created first US bank-backed blockchain-based asset called JPM Coin for its wholesale payments business.
Called as JPM Coin, the newly created cryptocurrency is permission blockchain-based asset which will require JP Morgan KYC. One JPM Coin will have the value equivalent to one U.S. dollar.
Over time, JPM Coin will be extended to other major currencies. “The product and technology capabilities are currency agnostic, ” says JP Morgan website.
According the bank, When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of U.S. dollars, reducing the typical settlement time.
This move of new digital currency comes unexpectedly from JP Mrgan, whose CEO, Jamie Dimon, has always been critical to Bitcoin and cryptocurrency remarks. In 2017, he became famous for his remark over Bitcoin when said, ” Bitcoin is actually a fraud that will ultimately blow up.”
The JPM Coin will be issued on Quorum Blockchain and subsequently extended to other platforms. It will be operable on all standard Blockchain networks.
Currently a prototype, which will be tested with a small number of J.P. Morgan’s institutional clients, JPM Coin will reportedly be used for securities transactions.
In April, the bank tested its Quorum Blockchain platform, along with with the National Bank of Canada and other lending sector participants. The intent was to streamline origination, settlement and interest rate payments, among other financial processes.
In October last year, India’s ICICI Bank joined JP Morgan’s blockchain-based payment project called Interbank Information Network (IIN), and become the only bank from India to have joined JP Morgan’s proprietary blockchain platform.