In line with its preparation for a future of cross-border payments, JP Morgan Chase & Co. needed a way to move money at a speed that makes wire transfers seem Jurassic. JP Morgan deals with more than $6 trillion worth of transactions daily through its massive wholesale payment business. Hence, it decided to explore the application of blockchain technology into the facilitation of payments between business clients.
Last year, the company announced the creation of JPM Coin. It is the first cryptocurrency from a major US Bank. It uses blockchain technology to instantly settle payments between clients. Cryptocurrency news all over the world now talk about this upcoming rollout and the potential impact to various industries.
Understanding the Basics
Before going deeper into details, let’s discuss first what makes JPM Coin unique.
JPM Coin instantly transfers funds between JP Morgan’s clients
This cryptocurrency is primarily a tool for JP Morgan’s clientele. JPM coin is the prerequisite between these parties to transact on a blockchain ledger. It is designed to facilitate and expedite fund transfers between the bank’s clients.
JPM Coin is like stablecoin for private use
Cryptocurrency websites often equate JPM coin to stablecoins. However, they key difference is that stablecoins are available to the public whereas JPM coin is available only to users with permissions. These permitted users are the bank’s institutional customers.
JPM Coin is more stable
Moreover, unlike stablecoins, JPM coin is more stable. It is redeemable in fiat currency and is more transparent than most stablecoins.
How Does This Affect the Industry?
With JP Morgan’s venture into the blockchain realm, it brings with it its reputation as one of the largest banks in the world. For the longest time, cryptocurrency news has branded blockchain technology as an uncertain field. JP Morgan’s foray into blockchain is a testament to the undiscovered potential and further applications of the said technology in the finance industry.
JP Morgan Chase & Co. can serve as a catalyst for improved international banking laws and regulations within the cryptocurrency space. A giant like it being present in the digital asset management realm may be able to entice skeptics to finally explore the cryptocurrency space.
The Future of JPM Coin
For its initial release, cryptocurrency news all over the world have reported that JPM coin will only be used by the bank’s clients. However, in the long run, JP Morgan may also roll out the currency for use of individual customers. Additionally, the bank also seeks to include other currencies over time.
As a pioneer of cryptocurrencies backed by major banks, JPM coin is also able to help bring digital currencies into the spotlight. This gives digital currencies the opportunity it needs to finally be able to get integrated into the mainstream financial industry.
You Can Also Secure Your Future With Blockchain
Major industries are now appreciating the benefits of blockchain technology. Now is the best time to take advantage of the industry’s profitability. Key Coin Assets is here to help you get started. Call us now at 843-886-9547.