JPMorgan Chase bank launched the JPM Coin blockchain a while back, and it received mixed feelings from the markets. However, the bank pushed ahead with its developments, and now they have introduced programmable payments into their blockchain.
Using the JPM coin, clients can now automate funds and capitalize on variations in exchange rates.
Onyx, a bank-led blockchain-building platform, launched the feature on November 10, 2023. According to Onyx, users can program their transactions using a simple, easy-to-use interface with an “If-Else” functionality.
Shortly after the bank expanded JPM Coin’s use, Siemens AG, a German company, became the first to conduct a Euro payment using JPM Coin.
Cargill and FedEx corporations are expected to join in on programmable payments soon. Other renowned banks, such as HSBC, continue exploring ways to harness blockchain technology.
JPM Coin Overview
JPM Coin is a stablecoin powered by JPMorgan’s blockchain and is backed 1:1 to the U.S. dollar. JPM Coin enables JPMorgan customers to carry out instant payments, and as of 2023, it has expanded to Europe.
JPMorgan’s blockchain, also known as Quorum, was acquired by Consensys, the company behind the famous Ethereum wallet – Metamask. JPM Coin serves as a settlement layer between the bank and its clients, where the latter sends funds and receives JPM Coins instantly in return.
According to J.P. Morgan, the JPM Coin is not money but a digital coin. The coin is not tradable and cannot be bought on retail or OTC. Furthermore, the coin is only limited to institutional clients of the bank.
Established companies in traditional finance like blockchain technology. However, the open nature of the technology makes them hesitant to embrace it.
Suffice it to say that Quorum is a permissioned blockchain. Banks like JPMorgan Chase like permissioned blockchains because they have more control.
However, traditional banks may be forced to turn to permissionless blockchains in the future as they offer more transactional legitimacy.
This move is expected to broaden JPMorgan’s reach and further bolster liquidity passing through their hands. As of November 7, 2023, JPM Coin was processing over $1 billion in trading volume.