JPMorgan Chase & Co.’s digital token, JPM Coin, has achieved a milestone by handling an impressive $1 billion worth of transactions on a daily basis, Bloomberg said in a report. Takis Georgakopoulos, the Global Head of Payments at JPMorgan, expressed the bank’s commitment to expanding the token’s usage during an interview on Bloomberg Television.
Primarily facilitating transactions in US dollars, JPM Coin operates through a private blockchain network, allowing wholesale clients to conduct dollar and euro-denominated payments. Despite being a noteworthy example of a live blockchain application by a major bank, JPM Coin still constitutes a fraction of the colossal $10 trillion in daily US dollar transactions processed by JPMorgan.
JPMorgan is not limiting itself to JPM Coin; the financial giant also operates a blockchain-based repo application and is actively exploring the potential of a digital deposit token to expedite cross-border settlements.
Takis Georgakopoulos shed light on the bank’s future plans, stating that the “next step in that journey is to think about how you can create a more retail version of that so that you can bring that same efficiency to consumers.”
While proponents of blockchain technology argue that it can offer instantaneous payments at a lower cost compared to existing technology, the full potential of digital ledgers has yet to be tested on the same scale as conventional payment networks. JPMorgan’s strides in this domain signal a growing interest in leveraging blockchain for financial transactions and hint at further advancements in the future.
