Crypto News Today: JPMorgan Embraces Blockchain for Settlements via Deposit Tokens

Bitcoin prices have historically reacted to shifts in the banking sector. A recent report on September 8th reveals that JPMorgan, a leading financial institution, is poised for a major strike in digital finance. The bank is nearing the completion of a revolutionary blockchain-based deposit token, pending regulatory approval in the U.S. as per a Bloomberg report.

Finally Blockchain in Banking: A New Start!

Having said that, JPMorgan’s new token, unlike stablecoins from non-banking entities, will be introduced by a depository institution. It will go opposite to JPM Coin, which is limited to transactions within JPMorgan. Hence, the new token allows transactions not only within JPMorgan but also with other banks, especially for settlements involving tokenized securities.

Following a successful pilot project with the Monetary Authority of Singapore last year, this breakthrough demonstrates substantial progress. The token, like JPM Coin, will enforce strict compliance, including thorough customer verification and anti-fraud measures. JPMorgan’s foray into blockchain-based deposit tokens is a significant milestone, not just for the bank, but for the wider financial industry. Subject to regulatory approval, this innovation stands to revolutionize cross-border transactions.

Recently, Monica Long, Ripple’s President emphasized the importance of implementing blockchain in banking: “The past few years have been a tipping point for institutional DeFi, where even the largest banks are adopting this technology”.

JP Morgan’s new system alongside the existing XRP payment system has raised questions. Some believe it may be impacted by regulatory issues, allowing the SEC to allow new crypto players while retaining Ripple.

Crypto Market Response to the News

The banking sector crisis has always positively impacted most of the coins. Majorly it raises faith in crypto as people tend to shift focus on stable coins as alternative investments. The good news is that banks like JP Morgan enabling the blockchain doors will boost the crypto assets for good. Bitcoin rose from $27,000 to over $28,000 on March 19 due to a Credit Suisse issue.