JPMorgan Will Pilot ‘JPM Coin’ Stablecoin By End of 2019: Report (#GotBitcoin?)
The United States’ largest bank, JPMorgan Chase (JPM), is expecting to pilot its own cryptocurrency JPM Coin by the end of 2019, according to a Bloomberg report on June 25. JPMorgan Will Pilot ‘JPM Coin’ Stablecoin By End of 2019: Report (#GotBitcoin?)
Umar Farooq, head of digital treasury services and blockchain at JPMorgan, has revealed the company’s intention to launch pilot testing of JPM Coin with selected clients “around the end of the year” in case if relevant regulators approve the bank to do so.
According to Farooq, JPMorgan has seen an increased interest from global customers in the potential benefits of the bank’s stablecoin project JPM Coin revealed in mid-February 2019. Specifically, JPMorgan clients in the U.S., Europe, and Japan have expressed interest to learn about JPM Coin’s capabilities in speeding up securities and bond transactions.
In this regard, Farooq stated that the bank’s stablecoin has a potential to enable “instant” delivery of bonds via blockchain. The JPM’s executive has also revealed the bank’s positive stance on tokenized and digital securities, predicting that a number of stocks will become digital in five to 20 years.
Speaking in an interview in Tokyo, Farooq said:
“We believe that a lot of securities over time, in five to 20 years, will increasingly become digital or get tokenized.”
In the recent interview, Farooq has reiterated his optimistic stance towards blockchain tech, after claiming previously that blockchain applications are “frankly quite endless.”
Recently, JPM’s managing director of global market strategy revealed that the bank believes that the bitcoin (BTC) industry has changed since 2017 due to impact from institutional investors.
Deutsche Bank Joins JPMorgan’s Crypto Payments Network
JPMorgan’s blockchain-based payments initiative has added Deutsche Bank as its latest member.
The addition brings the total number of banks signed up for the Interbank Information Network (IIN) to 320, according to a report from the Financial Times on Sunday.
Announced in October 2017, IIN is built on Quorum, the ethereum-based blockchain network developed by the banking giant, and employs a stablecoin dubbed JPM Coin. JPMorgan said at the time that the platform would slash the time and costs required when resolving interbank payments delays.
IIN saw the start of remittance trials with JPMorgan’s client banks in June.
As per the FT report, the bulk of the member banks use JPMorgan to process USD payments. Deutsche Bank, though, ranks number one globally for clearing of euro-denominated payments.
Takis Georgakopoulos, managing director of treasury services at JPMorgan, told the newspaper that, since IIN would have “very big natural limitations” if IIN members were only drawn from the bank’s client pool, the addition of Deutsche Bank “is going to help us drive towards ubiquity.”
IIN brings efficiencies by writing all the data on payments a shared ledger, thus allowing problematic payments to be resolved more quickly and with less manual processes, said Deutsche Bank’s global head of cash management, Ole Matthiessen.
With his bank having recently cut back its investment banking business and now relying more on transaction banking, he said joining IIN is “an important step” that would reduce Deutsche’s costs and also allow it to offer better services to clients.
Matthiessen added that IIN’s plan to have 400 members by the end of 2019 is on track, and that other major banking members are likely to be announced very soon.
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