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The stablecoin launched by JPMorgan Chase, ‘JPM Coin’ is now reportedly ready for commercial use, according to the bank’s global head of wholesale payments. JPMorgan has also created a new blockchain unit called Onyx.
Speaking to CNBC, Takis Georgakopoulos revealed that the JPM Coin is already being used by large technology clients to send payments around the world The tech client has been onboarded as JPMorgan launched its new business to house blockchain and digital currency efforts, called Onyx. The unit has 100 dedicated staffers.
Georgakopoulos said:
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.
The banking giant’s move could boost the broader blockchain and cryptocurrency space, and comes shortly after PayPal announced it was going to let its users buy, sell, and hold cryptocurrencies within their accounts.
Per Georgakopoulos JPMorgan is working on relieving pain points in the world of wholesale payments. A given example were cross-border payments, which currently rely on a complex web of correspondent banks, and that sometimes see payments get rejected for errors in account information. JPMorgan itself is said to move over $6 trillion a day across more than 100 countries.
As part of its efforts, JPMorgan also rebranded its network of over 400 participating banks and corporations on blockchain efforts from the Interbank Information Network to Liink. Speaking to the news outlet the newly named CEO of Onyx, Umar Farooq, said banks could charge a few cents to confirm data for each transaction and save money on mistakes that wouldn’t need to be remediated.
Another area of interest would be the processing of paper checks, which is currently done by people who handle mail at physical locations. The use of blockchain technology could simplify the area through the use of an exchange where digital information associated with the checks is posted.
The blockchain lead at JPMorgan, Christine Moy, confirmed the reporting on social media:
JPMorgan creates new division Onyx focused on #blockchain, JPM Coin is LIVE, the 400 bank network Liink has a new LIVE app to Confirm account info before payments to prevent fraud https://t.co/nVWlGvURNh
— Christine Moy $JPMLIINK (@cmoyall) October 27, 2020
Georgakopoulos declined to name the large technology firm using JPM Coin for cross-border payments, but said other clients are being on-boarded. JPMorgan is reportedly also looking to create payment rails for central banks.
Featured image via Unsplash.