A year and a half after the first announcement, JPM Coin – an in-house stack coin of JPMorgan Chase – is now active and used by a large multinational tech company for 24/7 payments.

According to the October 27 report, this tangible evidence that technology improves efficiency and reduces costs has boosted the huge bank’s confidence in the technology’s future and profitability. Expecting more commercial customers to sign up to use a stable currency, JPMorgan has created a company dedicated to digital currency and blockchain.

The new business unit, Onyx, has over 100 employees and is chaired by Omar Farouk as CEO. Takis Georgakopoulos, global head of wholesale payments at JPMorgan, told reporters:

“We are moving into a period of commercialization […] that moves from research and development to something that can become a real business.”
In the wake of PayPal’s recent move to cryptocurrency, there appears to be a growing strong belief that the blockchain could actually win them over. JPMorgan piloting and developing this technology still falls in several important areas.

First, since 2017, the mega-bank has been experimenting with a blockchain-based interbank information network, in which more than 400 banks and companies participate. JPMorgan believes the network, now renamed Liink, can provide significant cost savings through peer-to-peer interconnection for international wholesale payments. JPMorgan itself is responsible for more than $ 6 trillion per day in cross-border payment flows in 100 different countries.

The bank has also identified the blockchain advantage in upgrading the existing legacy system to process “hundreds and millions” of paper checks. Blockchain technology and digitization could definitely eliminate the physical aspects of this exchange. Georgacopoulos said there are several months left before the commercial launch of the new blockchain system:

“By using the blockchain issuance with members as the primary issuers of checks and the primary secure operators, we could save 75% of the total industry costs today and make checks available in minutes, instead of days.”
Finally, JPMorgan trusts the blockchain to create new payment systems for global central banks and central bank digital currencies. Georgacopoulos referred to China and Singapore and expressed his confidence that the likelihood of adopting the Convention on Biological Diversity “is very high”.

Onyx’s new CEO discusses why JPMorgan’s blockchain development has so far seemed “slow,” or at least controversial:

“If you think of the blockchain, we’re either somewhere in the reservoir of frustration or out of it in the hype curve. So we at JP Morgan were relatively calm about it until we were ready to scale it up and commercialize it.

Source: CoinTelegraph