JPMorgan Chase & Co., the largest bank in the United States, is reportedly contemplating the launch of a novel digital currency. This digital currency aims to expedite cross-border financial transactions.
While the project is still in its early stages, insiders with knowledge of the matter, who chose to remain anonymous, revealed that JPMorgan is exploring the concept of a blockchain-based deposit token.
This token would serve as a transferable digital currency, representing a deposit claim against the bank.
It’s worth noting that JPMorgan has already laid much of the groundwork required to implement this innovative payment system.
However, the bank will proceed with creating the deposit token only if it secures approval from U.S. regulatory authorities.
This deposit token represents an extension of JPMorgan’s ongoing efforts in the blockchain realm. The bank has previously introduced “JPM Coin,” a system that allows some of its institutional clients to seamlessly transfer dollars and euros within the bank.
Since its launch in 2019, JPMorgan has reported processing approximately $300 billion in transactions using JPM Coin.
The introduction of this deposit token has the potential to revolutionize cross-border transactions by leveraging blockchain technology.
Blockchain, a distributed ledger technology, enables the recording and verification of transactions without the need for intermediaries.
By doing away with intermediaries such as counterpart banks and clearinghouses, this new token has the capability to not only accelerate transactions but also reduce associated costs.
