JPMorgan launches euro blockchain payments for corporate clients using JPM Coin, expanding blockchain technology in traditional banking.
Key Points
- JPMorgan introduces euro-denominated payments for corporate clients using its JPM Coin.
- Germany’s Siemens AG conducts the first-ever euro payment on the JPM Coin platform, marking a significant milestone in JPMorgan’s blockchain initiatives.
- JPM Coin enables faster, safer, and more efficient transactions, aiming to transform traditional banking processes.
JPMorgan Chase & Co. has made a significant advancement in its mission to bring blockchain technology to traditional banking. The bank has now introduced euro-denominated payments for corporate clients using its highly publicized JPM Coin.
JPM Coin officially went live with euro transactions on Wednesday, as confirmed by Basak Toprak, JPMorgan’s head of Coin Systems for Europe, the Middle East and Africa, in an exclusive interview with Bloomberg News.The first-ever euro payment on the platform was conducted by Germany’s Siemens AG, Toprak revealed.
For almost a decade, large banks have been exploring ways to use blockchain technology to make their numerous processes more efficient. However, the commercial use of this technology has been limited and large-scale benefits have been hard to come by. This has led many skeptics to question whether blockchain is just a solution in search of a problem.
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JPMorgan Launches JP Coin
Despite these doubts, JPMorgan has managed to create a rare live blockchain application with its JPM Coin. Although it is only a small part of the bank’s payments business, it has already processed about $300 billion of transactions since its launch. This is just a drop in the bucket compared to the nearly $10 trillion of payments that JPMorgan processes on a daily basis.
The JPM Coin system is designed for wholesale payments clients such as large multinationals. It allows them to transfer dollars or euros to and from their various JPMorgan accounts around the world, or make payments to other customers of the bank using blockchain technology instead of traditional payment rails. Unlike traditional transactions that are typically only processed during business hours, JPM Coin payments operate constantly and are executed more quickly.
With the JPM Coin, JPMorgan has managed to create a rare and successful application of blockchain technology. While it may not be a game-changer for the bank’s payments business, it is a promising sign that blockchain technology can be used effectively in the financial industry.
