JPMorgan is making moves targeted at cementing its stance as a force to reckon with in the emerging digital asset market. The financial institution has recently made it known that it has plans to launch its own cryptocurrency — JPM Coin. Although, still an agenda for the future, it will be a major milestone in the bank’s plan for a worldwide crypto dominance.
JPMorgan has Plans For In-House Development
The coin is going to get worked on by engineers in the bank and its development won’t be outsourced. According to a recent report announcing the intention of the bank to develops the coin, it was stated that the coin development is moving to real world trials in “a few months”.
The announcement also made it known that the bank intends on using JPM Coin to “settle some portion of its transactions between clients of its wholesale payments business in real time”
Currently, the bank moves more than $6 trillion daily as part of its business, in light of this, even a small portion of this will significantly increase the overall capitalisation of the crypto market.
Proposed Uses of the JPM coin
In a recent statement Umar Farooq, JPMorgan’s blockchain lead, has noted three of the likely uses of the JPM coin. Farooq stated that the bank token can be used for “replacing wire transfers for international payments by large corporate clients and cutting settlement times from days to just moments. It could also be used to provide instant settlement for securities issuances, as well as to replace U.S. dollars at held internationally by subsidiaries of major corporations using JPMorgan’s treasury services.” Farooq continued that: “Is there a way to ensure that a subsidiary can represent cash on the balance sheet without having to actually wire it to the unit? That way, they can consolidate their money and probably get better rates for it.”“Pretty much every big corporation is our client, and most of the major banks in the world are, too,” he concluded.