American investment bank JPMorgan Chase & Co has enabled Euro-denominated payments via the JPM Coin, the native currency for their blockchain. Thus expanding the use of one of the projects known to promote the application of blockchain technology in traditional banking.
According to a Bloomberg report today, Basak Toprak, JPMorgan’s Head of Coin Systems for Europe, the Middle East, and Africa, confirmed that activation of the JPM Coin for Euro payments occurred on Wednesday, June 21.
He further stated that German Corporation Siemens AG conducted the first Euro-denominated transaction with the JPM Coin. A statement that a representative of Siemens corroborated.
What Is The JPM Coin?
Launched in 2019, The JPM Coin is a blockchain-based permission system that serves as a payment rail and deposit account ledger, allowing wholesale payment clients of JPMorgan to conduct transactions in dollars – and now euros – using blockchain technology instead of the traditional payment systems.
The JPM Coin forms part of JPMorgan’s Onyx Coin Systems and is designed to enhance the movement of funds and liquidity, thus enabling client payments. This blockchain system is available to all JPMorgan clients, not restricted by the limits of the traditional financial world, such as business hours.
In explaining the efficiency of the JPM Coin to Bloomberg, Basak Toprak expatiated on how corporate treasurers can utilize the payment system to improve liquidity management.
He said:
There are cost benefits to paying at the right time. This could mean they could earn more interest income on their deposits.
According to a report by Bloomberg, JPM Coin has processed transactions worth $300 billion since its establishment. While this may sound significant, it only makes up a small portion of JPMorgan’s business. The financial giant handles approximately $10 trillion worth of transactions every day.
JPMorgan – One Of Blockchain’s Biggest Supporters
In the last few years, JP Morgan has emerged as one of the biggest advocates for blockchain technology in the traditional finance world. This development is ironic considering the critical remarks made by the JP Morgan CEO Jamie Dimon about Bitcoin in 2017 and recently.
Asides from being the first major American bank to launch a blockchain-backed token – JPM Coin -, the banking colossus is the first major US bank to offer crypto funds to its wealth management clients
Furthermore, JP Morgan is the first bank to launch into the metaverse, opening a lounge in the prominent blockchain-based virtual world, Decentraland.
More recent strides in the blockchain space by JPMorgan include its collaboration with the Monetary Authority of Singapore in developing the whitepaper of the Apex bank’s digital money protocol alongside other prominent institutions such as the IMF, Amazon, DBS, etc.
