JPMorgan Transacts Over $1 Billion Daily Via JPMorgan Coin, Eyes Retail Version
Summary:
JPMorgan's Global Head of Payments, Takis Georgakopoulos, revealed that the firm transacts over $1 billion per day through its digital currency, JPMorgan Coin. The coin, developed to address issues such as slow payment speeds and the separation of money from data, is used for real-time settlements between institutional clients. The firm is also considering creating a retail version of the digital asset and sees the potential in banks digitalizing deposits using blockchain technology.
Takis Georgakopoulos, JPMorgan's worldwide chief of payments, disclosed that the corporation handles in excess of $1 billion per day in transactions via its digital currency, JPMorgan Coin. During an Oct.26 Bloomberg TV interview, Georgakopoulos highlighted the three main disadvantages of current payment methods: slow speeds, particularly for international transactions, the isolation of funding from data, causing reconciliation issues, and the interchangeability of money. The digital currency JPMorgan Coin is the company's solution to these problems, according to the executive, who mentioned that they already facilitate $1 billion in daily transactions for several big corporations via the coin.
Georgakopoulos indicated that the following step would be developing a consumer version of the currency. While Central Bank Digital Currency (CBDC) is one potential method, banks could also exploit the chance to digitalize deposits through blockchain technology.
JPMorgan Coin, underpinned by the US Dollar on a 1:1 collateral basis, is a stablecoin that was launched in 2020. Its sole purpose is to act as an intermediary for real-time gross settlements among the institutional clients of JPMorgan. In June 2023, JPMorgan announced that more than $300 million in transactions were made via JPMorgan Coins since its inception three years ago. The recent data, revealing daily transactions surpassing $1 billion, indicates a significant increase in just four months, a surge likely stimulated by the introduction of euro transactions via the JPMorgan Coin system in June.
Published At
10/26/2023 10:02:54 AM
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