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Banking Giant JP Morgan Releases Its Own Stablecoin

cryptopotato.com 27 October 2020 12:49, UTC
Reading time: ~2 m

About a year and a half after its announcement, JPMorgan Chase has released its stablecoin. The American multinational investment bank and financial services company has presented the digital asset, showing its beliefs in blockchain technology and cryptocurrencies.

After A Long Hype, It’s Time For JPM Coin

As per a recent news announcement, JPM Coin is already live and reportedly used by a large technology company to send payments across the world. The new-born digital asset is considered an indication of the pro-digital currency aims of the company and an expectation that more commercial clients will use its stablecoin in the future.

As a follow-up of the new currency release, JPMorgan has decided to create Onyx – a new business arm to house and operate its blockchain and digital assets enterprise.

“The unit has more than 100 dedicated staffers,” said Takis Georgakopoulos, the bank’s global head of wholesale payments.

We are launching Onyx because we believe we are shifting to a period of commercialization of those technologies, moving from research and development to something that can become a real business,” said Takis Georgakopoulos, the bank’s global head of wholesale payments.

Further Belief In Crypto And Blockchain’s Profitability

As per the announcement, JPMorgan Chase shows strong faith in the blockchain industry’s usefulness. According to Umar Farooq, the newly named CEO of Onyx, banks could now save money on removing mistakes and creating a model to earn money by participating in the network, while charging a few cents to confirm data for each transaction.

Processing paper checks would also benefit from the integration of digitalization.

“Using a version of blockchain with the participants being the main issuers of checks and the main operators of lockboxes, it’s possible we can save 75% of the total cost for the industry today, and make checks available in a matter of minutes as opposed to days,” said Georgakopoulos.

As CryptoPotato reported, JPMorgan Chase has shown its readiness to enter the crypto world as early as last year, changing its opinion on Bitcoin in general. Back then, the major bank announced plans to launch its own cryptocurrency, which would be used to settle transactions between clients of its wholesale payments business instantly.

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