JPMorgan, a prominent investment bank based in the United States, is taking a significant step in integrating its blockchain technology into traditional banking practices.
In a recent report by Bloomberg on June 23, JPMorgan confirmed the deployment of its blockchain-based payment system, JPM Coin, to enable euro-denominated payments for its corporate clients. The move marks an expansion of the existing platform, which initially supported transactions in U.S. dollars.
According to Basak Toprak, the head of coin systems for Europe, the Middle East, and Africa at JPMorgan, the integration of JPM Coin with euro transactions went live on June 21. Notably, German conglomerate Siemens became the first company to process a euro payment using the platform.
This blockchain-based system is designed to facilitate wholesale payments for clients, including large multinational corporations, allowing for instant and 24/7 transfers of euros to and from JPMorgan accounts. This development significantly enhances traditional banking processes, as conventional transactions are typically limited to business hours.
Toprak highlighted the cost benefits of timely payments, stating that clients could potentially earn more interest income on their deposits.
JPM Coin was launched in 2019 and functions as a live application providing an alternative payment rail utilizing blockchain technology. The bank has already processed approximately $300 billion in transactions using JPM Coin since its launch. However, the system has yet to be fully scaled, with JPMorgan's overall daily payment volumes estimated at around $10 trillion.
JPM Coin operates within JPMorgan's blockchain-based platform known as Onyx Coin Systems, which was introduced in 2020 to enhance the quality of wholesale payment transactions. As of April 2023, the bank has reportedly processed nearly $700 billion in short-term loan transactions through the Onyx platform.
In unrelated news, JPMorgan recently faced a $4 million fine from the U.S. Securities and Exchange Commission for mishandling internal communications. The bank had inadvertently deleted approximately 47 million emails from its retail banking group, violating the requirement to retain business records for a minimum of three years as mandated by U.S. securities laws.
The introduction of euro-denominated transactions using JPM Coin demonstrates JPMorgan's commitment to advancing blockchain technology within the banking industry. As traditional financial institutions explore the potential of blockchain, its implementation offers secure and efficient settlement options, ultimately transforming the way transactions are conducted.
