JP Morgan Chase has taken a significant step by enabling its clients to utilize its blockchain-based payment system for transactions involving the European Union (EU), according to a report by Bloomberg on June 23. As per the report, JP Morgan commenced the offering of JPM Coin for euro-denominated transactions on June 21, with German multinational conglomerate Siemens AG being the first beneficiary.
Siemens Implements JPM Coin for Transfers
Both JP Morgan and Siemens AG have confirmed this pioneering transaction to Bloomberg, although specific details regarding its size were not disclosed. JPM Coin, being a blockchain-based asset, boasts the advantage of continuous transferability, facilitating round-the-clock transactions. Basak Toprak, JPMorgan’s head of Coin Systems for Europe and MENA, emphasized the numerous benefits of JPM Coin resulting from this feature.
He highlighted that swift transfers enable companies to make payments closer to their due dates, empowering corporate treasurers to manage liquidity more effectively. Furthermore, this seamless payment solution allows companies to leverage cost benefits and maximize interest income on deposits.
Since its introduction in 2019, JPM Coin has been available exclusively to institutional clients. According to Bloomberg, the asset has successfully processed an impressive $300 billion in payments since its inception. However, it still represents only a fraction of JP Morgan’s colossal $10 trillion in daily payments. This indicates the potential for further growth and adoption of JPM Coin in the future.
JP Morgan has been actively engaged in various blockchain-related initiatives. In June 2023, the bank announced a pilot program dedicated to interbank blockchain settlements in India, demonstrating its commitment to exploring the technology’s potential. Additionally, in November 2022, JP Morgan executed a public blockchain transaction in Singapore, further solidifying its blockchain capabilities.
The firm also offers its Onyx suite of blockchain tools, which have garnered industry recognition. It’s worth noting that JP Morgan was the driving force behind the development of the enterprise Ethereum platform Quorum before selling the product to ConsenSys in 2020.
JP Morgan Grows as More Institutions Get Involved in Cryptocurrency
In the previous week, institutional interest in Bitcoin drove a surge in its price. Bitcoin experienced a remarkable 20% increase, surpassing the $30,000 mark. This surge can be attributed to the news of numerous major institutions applying for spot Bitcoin exchange-traded funds (ETFs).
Among these institutions, BlackRock, a prominent global investment management corporation overseeing assets worth over $8 trillion, has applied to introduce its spot Bitcoin ETF. Despite regulatory bodies such as the SEC exercising caution, these firms are actively pursuing approval for their Bitcoin ETFs.
Final Thought
JP Morgan Chase’s expansion into blockchain-based payments for European transactions with JPM Coin marks a significant milestone. This innovative payment system allows for seamless and continuous transfers, empowering companies to manage liquidity effectively and unlock cost benefits. With successful transactions and ongoing blockchain initiatives, JP Morgan continues to drive innovation in the financial industry.