JP Morgan, one of the largest banks in the world, has announced the development of a token to process international payments among its customers. It is the first time an American bank has ever used crypto-technology for real-world use. The first tests are expected to begin in the coming months.
JPM Coin will be a stablecoin, dollar-backed, paired one-by-one, according to CNBC. Its use will be at first in international payments to large corporate clients of the bank in real time. Also, the bank will use the digital currency for securities transactions. Another intended use is in treasury services provided by the bank to large companies that have subsidiaries in different locations around the world. JP Morgan trades daily $ 6 trillion worldwide.
Low cost and real-time transactions
The announcement was widely commented on in the crypto ecosystem, although recently JP Morgan’s CEO, James Dimon, had criticized bitcoin. Thus, the news confirms that one of the largest banks in the world sees value in the blockchain. “This is encouraging news for the market in general, announcing earlier this year the process of institutionalizing the market through the participation of a large player,” says Julian Lanzadera, Legal and Corporate head of Transfero Swiss AG.
The JP Morgan ruling also confirms that the use of crypto assets for international payments is advantageous to the parties involved. “I believe these transactions will certainly gain volume and scale throughout 2019. Central banks will have much work ahead,” says Lanzadera.
Other institutions are developing other projects focused on international payments using blockchain technology. It is the case of Amex, a payment system that is being developed by Ripple in partnership with American Express and Santander.
The CNBC portal reported on the project for the development of JPM Coin on February 14.