The love between JP Morgan and cryptocurrency, which did not seem to be there for long, appears to exist on Valentine’s Day anyway. Yesterday, the news came out that the megabank will launch its own cryptocurrency somewhere in the coming months; JPM Coin.
JPM Coin will be the first cryptocurrency ever issued by a bank. JP Morgan will use the crypto for the rapid settlement of international payments. Blockchain technology makes it possible to process transactions almost immediately, so that the technology is expected to cause a revolution in the financial world.
The JP Morgan branch that will use the crypto will move around $ 6 trillion a day for bank customers. The bank has been testing the potential of blockchain for some time, and has set up a number of blockchain projects for this purpose. The leader, Umar Farooq, said about the crypto:
The applications are frankly quite endless; all companies or institutions with a distributed ledger can use this properly.
The crypto can best be compared with current stable coins such as tether (TUSD). The value of the crypto is in fact 1 dollar, so companies can transfer value quickly and easily via a blockchain. After a customer returns the JPM Coin, the customer gets the same amount in dollars and the JPM Coins are destroyed.
JP Morgan has often criticized cryptocurrencies, but now seems to want to stay one step ahead of other traditional institutions. After the news was announced, the share price of JP Morgan rose by 0.5%, indicating that the news was received positively.