JP Morgan Bank launches its own cryptocurrency, the JPM Coin

The US investment bank JP Morgan has announced the launch of its cryptocurrency named JPM Coin in order to process international payments instantly.

In an interview with CNBC, Umar Farooq, head of blockchain projects at JP Morgan, revealed that the New York holding company was launching a digital token to instantly settle wholesale transactions.

Unlike Bitcoin, the JPM Coin will only be accessible to the most important customers of the bank. It is a "private" cryptocurrency stablecoin type backed by the US dollar with a ratio of 1: 1.

According to Farooq, the JPM Coin will allow large companies to make international payments instantly.

"Instead of taking sometimes more than 24 hours to be done - because institutions have a time limit for transactions and countries operate under different systems - payments will be settled in real time and at any time of the day." he explained.

The coin will also provide opportunities for large groups using JP Morgan's treasury department to replace the dollars they hold in their subsidiaries with JPM Coins.

In addition, it will speed up the settlement speed of securities transactions.

We learn that initially, only a tiny portion of transactions will be processed through cryptocurrency.

This trial, however, represents the first actual use of a digital token by a major US bank.

This fall, JP Morgan announced that its Quorum blockchain infrastructure would be used to tokenize assets such as gold bars to create new exchange opportunities.

In early February, Nikolaos Panigirtzoglou, an analyst at JP Morgan, said price stabilization on the cryptocurrency market "would open the way for greater institutional investor participation."

Source : JP Morgan