This morning, a report from Bloomberg Japan gave insights to recent developments from JPMorgan Chase. The investment bank’s head of digital treasury services and blockchain, Umar Farooq, explained that customers would be allowed to try the technology with the goal of speeding up transactions. An instance is payments between firms and bond transactions.
Based on Bloomberg’s report, the trials are being conducted on the premise that regulatory permission would eventually be granted.
JPM Coin to function as a Stablecoin and for settlement across regions
Initially launched in February 2019, the JPM Coin opened first on Quorum, a private version of Ethereum developed by the American bank. The Coin will function as a stablecoin, entailing fiat cash being deposited at the bank in exchange for the token. The token can then be transferred via a permissioned distributed ledger. The receiver will later be able to redeem the token for cash from JPMorgan.
JPM Coin was first linked to the U.S. dollar. But the coin is expected to be extended to other fiat currencies in the nearest future. Based on reports, real-world trials will be taking place in a few months.
On the subject of JPM Coin’s state of development, Farooq mentioned in Bloomberg’s report:
“The technology is very good, but it takes time in terms of licensing and approval. It must be explained.”
In regards to inter-firm remittances, the cryptocurrency can also be used to settle bonds and commodities transactions. Customers in different regions of the world like Europe, the US and Japan have already shown interest, according to Farooq. Although, he refused to disclose the names of the companies involved in the coming trials.