Banking giant JPMorgan Chase (JPM) is introducing its own cryptocurrency in what is considered to be a first in United States’ banking history.
This is according to a report on CNBC.
In a move industry observers deem unlikely, JP Morgan will use its newly developed asset, called “JPM Coin,” to bolster settlement efficiency, at first within three of its operations.
Umar Farooq, who leads JPM’s blockchain focus, seemed buoyant on blockchain technology’s perspectives at the bank.
“So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction,” he was quoted as saying in the interview with CNBC, adding:
“The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this.”
JPM Coin would first focus on foreign settlements by major companies, helping hasten transactions that often take a day or longer using extant options such as SWIFT.
Elsewhere, treasury services and securities transactions are also set to benefit, Farooq claiming the cryptocurrency could expand if it is proven to be successful.
Only a small amount of the total funds involved in the three areas would initially involve JPM Coin.
“Even if this was limited to JPM clients at the institutional level, it shouldn't hold us back,” he added.