JPMorgan's JPM Coin Hits $1 Billion in Daily Transactions
JPM Coin runs on Quorum, a private Ethereum-based blockchain
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JPMorgan Chase & Co.’s digital token JPM Coin is now processing $1 billion worth of transactions daily, a major milestone for the bank’s blockchain initiative.
“JPM Coin gets transacted on a daily basis mostly in US dollars, but we again intend to continue to expand that,” said Takis Georgakopoulos, JPMorgan’s Global Head of Payments, in an interview on Thursday.
JPM Coin was created by JPMorgan to enable instant payments between clients with accounts at the bank. JPM Coin operates on Quorum, a private blockchain based on Ethereum that was developed internally by JPMorgan and later acquired by ConsenSys.
It runs on Quorum, a private blockchain developed by the bank, and is pegged 1:1 to the US dollar. Each JPM Coin represents one US dollar held in designated accounts at JPMorgan Chase.
While $1 billion seems small compared to the total $10 trillion in US dollar payments processed by JPMorgan daily, it represents significant progress in the adoption of blockchain technology at major financial institutions.
Georgakopoulos stated that JPMorgan plans to continue expanding use cases for JPM Coin, including cross-border payments and transactions with retail customers. The bank is also developing a digital deposit token to accelerate international settlements.
Earlier this month, JPMorgan launched its Tokenized Collateral Network (TCN) on its Onyx blockchain to allow instant collateral transfers. BlackRock tokenized money market fund shares on TCN and transferred them to Barclays as collateral for a trade, demonstrating TCN’s speed over the traditional settlement.