JPM Coin, the digital currency of banking giant, JPMorgan Chase, is now live following months of development
JPMorgan Chase, one of the largest banks in the United States and the world, announced the launch of its JPM Coin yesterday. Takis Georgakopoulos, JPMorgan global head of wholesale payments, revealed that the bank believes the hype surrounding blockchain technology has surpassed the inflated expectations, and it is now a commercially viable product.
The bank executive revealed that the JPM Coin is now live as a major tech firm will use it to make global payments starting this week. This will be the first time JPMorgan will use its coin commercially.
JPMorgan first announced its intentions to launch a digital currency in February 2019. According to the press release, the JPM Coin will use blockchain technology to facilitate the transfer of payments between banks and other institutional clients. The digital currency is different from other cryptos like Bitcoin. Furthermore, JPM Coin is at a 1:1 ratio for fiat currency held by the bank. The coin is now live and will be used for the first time this week.
JPMorgan invites banks and fintechs to build on its blockchain network
The banking giant believes that blockchain technology has become a commercially viable product. As such, JPMorgan has created a business unit with over 100 employees. Georgakopoulos stated that “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 bank is now inviting other banks and fintech companies to build on its revamped blockchain network. According to Christine Moy, head of JPMorgan’s Liink banking network, the Liink network can serve as a foundation of an enterprise mainnet.
The Liink network is based on a fork of Ethereum. Moy added that it is currently operating more like a decentralised network rather than a central command product. Moy is now inviting the over 400 financial institutions (including 25 of the largest 50 banks) to use their Liink blockchain network to build their digital infrastructure.
The bank exec stated that Liink participants could build applications on the network. Doing so allows them to spotlight their local expertise with global reach. “If a Liink participant has specific expertise around payments in a particular region or currency, for example, it has the opportunity to build an application and deploy it on Liink to make it available to the network”, she added.
JPMorgan and its execs have been previously critical of Bitcoin and the crypto space. However, the bank has changed its stance in recent years and is launching products in the crypto and blockchain space.