JP Morgan Considers New Blockchain-Based Settlement Token
Date: 2023-09-08 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
JP Morgan Chase & Co. Bloomberg reports on September 7 indicate that a new blockchain-based digital deposit token will be created very soon.
The new token allows for faster cross-border settlements and payments. JP Morgan, the infrastructure needed to process transactions for the sake of the token, based on statements from anonymous sources knowledgeable about this.
The creation of the JP Morgan token has not yet been initiated, as it requires US regulatory approval - a process that the company is just beginning. A JP Morgan spokesman said the bank recognizes regulators' "thoughtful and diligent" approach to the approvals. Bloomberg speaks about this, citing statements by a bank representative in an interview with Bloomberg magazine.
However, JP Morgan could reportedly introduce the token and begin offering it to clients within a year of regulatory approval.
Externally similar to JPM Coin, but has differences
It appears that the planned token is somewhat similar to the company's already existing JPM Coin. Reporting shows that upcoming deposit tokens are customer deposit accounts and move along the blockchain rails. JP Morgan's website similarly describes the cryptocurrency "JpM Coin", which it says is US dollars that circulates within the company via a distributed ledger.
Just like JPM Coin, the new token will be limited to banking use and not retail use.
And it must rely on know-your-customer (KYC) compliance systems.
Despite this, the planned deposit token will differ from JPM Coin in several ways. It is worth noting that the new token makes it possible to send money to other banks. In particular, it can be used to carry out settlements for transactions with tokenized securities and financial instruments. Additionally, the new deposit token could be offered in a variety of currencies other than the US dollar. But JPM Coin itself has expanded to support the Euro this year!
Bloomberg cited an earlier statement from JP Morgan, in which it expressed hope that depository tokens will become a “widely used form of money” and also expressed confidence that these assets will be considered the most promising. In 2022, a pilot project of the company related to deposit tokens was created.
