After one and a half years, “JPM Coin” JPM Coin officially completed its first commercial application

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Takis Georgakopoulos, head of global wholesale payment business at JPMorgan Chase, recently revealed that the bank’s digital currency “JPM Coin” was used by a large customer for commercial payments worldwide for the first time.

Georgakopoulos also said that this development and several other behind-the-scenes actions have prompted JPMorgan to create a new business unit “Onyx”, which focuses on blockchain and digital currency projects, and currently has more than 100 employees. “We launched Onyx because we believe that the industry is entering the commercialization phase of technology.”

According to previous reports, JPMorgan Chase first revealed “JPM Coin” in February last year. At that time, the bank said that each JPM Coin can be exchanged for one U.S. dollar, and its value is not volatile, similar to the so-called stable currency. Customers can obtain the tokens after depositing USD in the bank; after using tokens to pay or purchase securities on the blockchain, the bank will destroy these tokens and return the corresponding amount of USD to the customer.

Umar Farooq, head of the blockchain project at JPMorgan Chase, introduced that JPM Coin has three application scenarios:

1. Cross-border payment for large enterprise customers;

2. Securities trading;

3. Replace the dollar.

At present, the main potential use case of JPM Coin is cross-border payment. Decrypt quoted relevant data as saying that JPMorgan Chase transfers more than $6 trillion in funds between more than 100 countries/regions every day. Through blockchain technology, the bank will usher in a new era that can quickly confirm international payments in a cost-effective manner.

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In addition, blockchain technology will also help JP Morgan Chase reduce the cost of paper checks. Georgakopoulos pointed out, “By using blockchain technology, transaction participants are the main issuers of checks and the main operators of safe deposit boxes, which can save the current industry 75% of the total cost and provide checks in minutes instead of days. .”

Speaking of JPM Coin’s possible challenges, JP Morgan Chase once stated that even if other banks launch their own tokens, the institution’s first-mover position in corporate payments and its large market share held-it is 80% of the world’s top 500 companies Providing banking services-will enable it to have a good market competitiveness.

“Almost every major company is our customer, and most mainstream banks in the world are also the same. Even if the token is restricted to JPMorgan Chase’s institutional customers, this will not hinder our development.”