Jamal Al-Farouq JPMorgan revealed that it is conducting daily transactions amounting to $1 billion through its proprietary digital currency, JPM Coin. Takis Georgakopoulos, who serves as the Global Head of Payments for JPMorgan, further elaborated that the majority of these transactions are conducted in U.S. dollars. The financial institution has aspirations to diversify the currencies involved in the near future.
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JPM Coin Facilitates Daily Movements Worth $1 Billion
The financial behemoth JPMorgan stated that its in-house cryptocurrency, JPM Coin, is being employed to handle daily transactions valued at $1 billion. In a formal communication, Takis Georgakopoulos, JPMorgan’s Global Head of Payments, disclosed that the bank aims to broaden the utilization of JPM Coin in future endeavors, thereby increasing its adoption rate.
In a recent discussion with Bloomberg, Georgakopoulos remarked:
JPM Coin is primarily used for transactions denominated in U.S. dollars; however, the intention is to broaden this scope in due course.
JPM Coin permits transactions not just in U.S. dollars but has recently included euros, facilitated by the Qorum blockchain. This distributed ledger technology was developed by JPMorgan in 2016 and was later acquired by the Ethereum software firm Consensys in 2020.
Initiated in 2019 and commercially deployed in 2020, JPM Coin stands as one of the scant few blockchain applications that have achieved this level of acceptance among banking institutions. While significant, the $1 billion in transactions is modest compared to the $10 trillion processed using JPMorgan’s conventional banking systems, as reported by Bloomberg.
Potential for Retail Adoption of Blockchain Technology
Georgakopoulos hinted at the future use of deposit tokens for retail applications. JPMorgan regards deposit tokens as the next evolutionary step of stablecoins, representing a claim on a deposit held at a regulated financial institution such as a bank.
Georgakopoulos expanded on this idea:
The subsequent phase in this technological trajectory involves conceptualizing a retail-focused version to bring similar efficiencies to individual consumers.
Earlier this year, in February, JPMorgan expressed its enthusiasm for deposit tokens, deeming them as a promising technological advancement and profiling them as another facet of programmable money. The institution asserted that such tokens “have the potential to serve as a robust foundation for digital money and a crucial component of a more extensive tokenized asset ecosystem.”
As of September, insider sources indicated that the bank is in the process of constructing a platform that would employ deposit token technology to deliver rapid settlements and payments to its institutional clientele. Nevertheless, the financial institution will not roll out these services until the project has undergone review and received approval from U.S. regulatory agencies, with an anticipated launch date set for one year following this approval.
Your thoughts on JPMorgan’s utilization of JPM Coin for transaction settlements are invited in the comments section below.
Frequently Asked Questions (FAQs) about JPMorgan JPM Coin Transactions
What is the daily transaction volume of JPM Coin?
JPMorgan has revealed that its proprietary digital currency, JPM Coin, is facilitating daily transactions worth $1 billion.
Takis Georgakopoulos, the Global Head of Payments at JPMorgan, is overseeing the operations and strategy related to JPM Coin. He has also stated that the bank plans to broaden the currency’s utilization in the future.
In what currencies are the transactions primarily denominated?
As of now, the majority of transactions using JPM Coin are denominated in U.S. dollars. However, the bank has intentions to expand this scope to include other currencies, such as the euro.
What blockchain technology does JPM Coin utilize?
JPM Coin transactions were initially facilitated by the Qorum blockchain, a distributed ledger technology developed by JPMorgan in 2016. This technology was later sold to Ethereum software firm Consensys in 2020.
How does the volume of JPM Coin transactions compare to JPMorgan’s traditional banking transactions?
While JPM Coin is being used for $1 billion in transactions daily, this amount is modest compared to the $10 trillion transacted through JPMorgan’s conventional banking systems, according to Bloomberg.
What is the potential future application of deposit tokens?
JPMorgan is considering the use of deposit tokens for retail applications. These tokens are seen as an evolution of stablecoins and represent a claim on a deposit at a regulated financial institution.
When did JPMorgan first announce JPM Coin?
JPM Coin was first announced by JPMorgan in 2019 and began its commercial use in 2020.
What are the regulatory constraints for the new platform involving deposit tokens?
JPMorgan is developing a platform for its institutional clients that will use deposit token technology. However, the service will not be available until it receives approval from U.S. regulatory agencies. The platform is expected to launch one year after obtaining this approval.
Is JPMorgan planning to expand JPM Coin services to retail customers?
While no formal announcement has been made specifically targeting retail customers, Takis Georgakopoulos hinted at a retail-focused version of deposit tokens that could bring similar efficiencies to individual consumers.
What is JPMorgan’s stance on deposit tokens?
JPMorgan expressed its enthusiasm for deposit tokens in February, deeming them a promising advancement in programmable money. The institution believes such tokens can serve as a robust foundation for digital money and a crucial part of a broader tokenized asset ecosystem.
More about JPMorgan JPM Coin Transactions
- JPMorgan Official Announcement on JPM Coin
- Interview with Takis Georgakopoulos by Bloomberg
- Overview of JPM Coin and Blockchain Technology
- Regulatory Framework for Digital Currencies in the U.S.
- Consensys Acquisition of Qorum Blockchain
- JPMorgan’s Banking Transactions Volume
- Deposit Tokens: An Evolution of Stablecoins
- Digital Money and Tokenized Assets
- U.S. Regulatory Approval Process for Financial Technologies
10 comments
JPM Coin has been around since 2019 and I barely hear about it in crypto circles. Why is it so under the radar?
The stance on deposit tokens is intriguing. Programmable money is the future and it seems JPMorgan is well aware of that.
Deposit tokens for retail applications, now that’s something to keep an eye on. Could be a game changer, if it passes the regulatory hurdles.
Whoa, JPM Coin is moving a billion a day? Thats pretty huge for a bank-based crypto. Traditional finance is finally catching up huh.
A billion daily but still a long way from the 10 trillion in traditional transactions. Shows crypto has a long way to go.
Interesting how Qorum blockchain went from being JPMorgan’s inhouse tech to being sold to Consensys. Wonder what that means for future JPM Coin updates.
Took them long enough to think about the retail sector. Big institutions always late to the party.
So they’re planning to include euros and whatnot, but what about other currencies? The article didn’t mention that.
i’m actually surprised its only a billion. You’d think JPM would have more pull in the crypto space by now.
Regulatory approval is the key here. If they get it, this could be a new era for institutional crypto use.