JP Morgan will issue the first crypto of an American bank, JPM Coin. This breaking news was announced by CNBC during an interview with Umar Farooq, head of the blockchain department of J.P. Morgan.
It will probably be an interbank stablecoin for making payments between JP Morgan’s customers.
Umar Farooq explained:
“So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction. The applications are frankly quite endless; anything, where you have a distributed ledger which involves corporations or institutions, can use this.”
There will be three uses for JPM Coin:
- International payments for large corporate clients. This type of payment has so far been made by bank transfer with Swift;
- Transactions for equities. In April, J.P. Morgan tested the debt issue on the blockchain, creating a simulation of a $150 million certificate of deposit. Rather than relying on traditional means – resulting in a time gap between the settlement of the transaction and its payment – institutional investors will be able to use the token for instant transactions;
- JPM Coin would also be used by large companies using J.P. Morgan’s treasury services business to replace the dollars they hold in their subsidiaries worldwide.