What is the bank planning now? “Many of our clients send their money in different ways. But they want to send their assets in real time, “says Umar Farooq, who oversees the institute’s blockchain projects and digital payments. Even today, major clients are moving more than $ 5 trillion through JP Morgan – a day. But at least for now, this prototype should only be available to business customers. As a next step, the JPM Coin will now be offered to a small number of institutional clients of the major bank. But they did not want to tell Farooq what they are.
This makes the JPM Coin very different from the digital currencies that have been on the market so far. The in-house blockchain will not be open, as is the case with almost all other digital currencies. It only serves as an internal clearing tool – similar to Ripple – but is tied one to one to the dollar.
This excludes the constant ups and downs of the other digital currencies for the JPM Coin. Other currencies such as the euro and the yen could also be tied up. This is a big step for Blockchain technology as it has arrived on Wall Street.
This can take several days. This applies to both private individuals and companies. Here the financial industry promises itself many advantages by the Blockchain. It would speed up and simplify payments. As a result, they could either become cheaper for the customers, or the companies offering it could provide a handsome return on investment.
Despite the dismissive attitude of Jamie Dimon, JP Morgan has been active in the field for a long time. It was not long before they joined the banking syndicate R3, which was to test and explore the potential of blockchain technology – incidentally, for example, together with Deutsche Bank. But then they left in 2017 again to go their own way. This own path then led to a complete in-house development.
A blockchain called quorum was built, with the support of a few respected developers of Ethereum, a digital currency also based on the blockchain. Quorum now serves as the basis for the so-called JPM Coin. Coin is the English term for coin, so it is the “JP Morgan coin”.