Global investment bank JPMorgan expects its digital currency, JPM coin, to “start taking off.” The bank says JPM coin could handle $10 billion in daily transactions in the next year or two, according to its global head of financial institution payments. He emphasized that JPM coin transactions should grow at least five to tenfold.
JPMorgan’s JPM Coin Poised to Handle $10B Daily
Global investment bank JPMorgan’s global head of financial institution payments, Umar Farooq, discussed the bank’s own digital currency, JPM coin, on Wednesday in an interview with Bloomberg on the sidelines of the Singapore Fintech Festival.
Farooq expressed his optimism for JPM coin transactions to grow at least five to tenfold, emphasizing the potential for daily transactions with JPM coin to reach $10 billion within the next year or two. He opined:
We really think it’s going to start taking off.
JPMorgan described JPM coin as “a permissioned system that serves as a payment rail and deposit account ledger, that allows participating J.P. Morgan clients to transfer U.S. dollars held on deposit with J.P. Morgan within the system, facilitating the movement of liquidity funding and payments in right time.”
Jamie Dimon, the chairman and CEO of JPMorgan Chase, previously explained: “We use a blockchain network called Liink to enable banks to share complex information, and we also use a blockchain to move tokenized U.S. dollar deposits with JPM coin.” The JPM coin website states that the coin “facilitates real-time value movement, helping to solve common hurdles of traditional cross-border payments.”
In October, JPMorgan said JPM coin is being used to settle $1 billion daily. JPMorgan Chase’s Global Head of Payments Takis Georgakopoulos stated at the time that the bank plans to expand JPM coin’s usage in the future, widening adoption.
JPMorgan Chase also recently debuted its blockchain-based collateral settlement system. Blackrock, the world’s largest asset manager, became the first client to use JPMorgan’s Tokenized Collateral Network (TCN). Blackrock used the system to convert shares in one of its money market funds into digital tokens, which it then used as collateral in an over-the-counter derivatives trade with Barclays Plc.
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