JPMorgan Chase, a well-known crypto skeptic, has announced its own US Dollar backed cryptocurrency JPM Coin. This is the first ever bank backed crypto in the USA. This blockchain-based stablecoin is now available to the institutional clients but not to the retail investors.
JPMorgan Chase is Rolling Out USD-Backed Crypto: What’s the Objective?
The leading US bank is launching JPM Coin (their USD-backed stablecoin) for 3 different applications initially. These applications are:
- Cross-border payment on a real-time basis: With the launch of JPM Coin, cross border payments can be settled on a real-time basis. Currently, wire transfer of payments across international lines usually faces settlement delays.
- Faster securities transactions: Currently, a time gap exists between the settlement of security transaction and the time in which the receiving party gets the payment.
- Greater fluidity for its institutional clients: The institutional clients or High Net-worth Individuals will be able to move money faster to their subsidiaries across the world with the help of US-Dollar backed JPMorgan cryptocurrency. With JPM Coin, the
fluidityof such money transfer increases exponentially.
Reports say JPMorgan Chase bank facilitates the
Umar Farooq (head of JPMorgan‘s blockchain projects) has regarded this move as the start of a new way of financial baseline. He went on to say:
“The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this.”
The JPMorgan Chase’s has said in a statement that:
“JPM Coin is currently designed for business-to-business money movement flows, and because we are still in a testing phase, we don’t have plans to make this available to individuals at this stage. That said, the cost-savings and efficiency benefits would extend to the end customers of our institutional clients.”
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