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JPMorgan Chase is in the process of creating a blockchain-based digital deposit token that aims to speed up cross-border payments.
According to a knowledgeable insider, the largest bank in the US by assets has put in place the basic infrastructure needed to make this innovative payment method work. However, final approval from US regulators is still awaited.
The undisclosed source also suggested that once approved, the bank could introduce the token for use by its corporate clientele in less than a year.
To provide context, a deposit token is a transferable digital currency that stands for a deposit receivable held with a commercial bank. Due to the nature of transactions that take place in digital Block, processing and settlement are almost instantaneous.
A JPMorgan spokesperson emphasized:
Deposit tokens offer numerous potential benefits, but we consider the caution and thoroughness that regulators would exercise before greenlighting the development and deployment of any new product.
If interest materializes, our blockchain infrastructure is ready to efficiently facilitate the introduction of escrow tokens.
For some time, the financial industry on Wall Street has been exploring the integration of cryptocurrencies as a foundational component of payments and transactions. With JPMorgan taking the lead in crafting this blockchain-based deposit token, it's possible that other major banks will launch similar initiatives in the coming months. JPMorgan has consistently been at the forefront of efforts to implement more technological advancements in banking practices.
The bank currently operates a system known as JPM Coin, which was introduced in 2019. This platform allows selected JPMorgan corporate clients to transfer dollars and euros to their various bank accounts.
Since its inception, the system has successfully processed approximately $300 billion worth of transactions, as reported by the bank last summer.
Ð ~ Ð · Ñ, Ð ¾ Ñ ‡ Ð ½ Ð ¸ Ð º: Bloomberg