- JPMorgan has processed more than $300 billion since launching the system.
- Unlike traditional transactions, JPM Coin payments are continuous
JPMorgan, an American bank, announced it is incorporating blockchain technology into its traditional banking operations. As part of this project, the bank introduced a system of payments in euros for its corporate clients with JPM Coin. The first transaction in euros on the platform was conducted by the German company Siemens AG.</nbsp;
JPM Coin was launched back in 2019, but for transactions in dollars, but now the project has expanded to euros. JPM Coin is a rare case of a blockchain application, but makes up only a small part of the company’s payment business. Since its launch, the bank has used it to process about $300 billion in transactions. Compared to JPMorgan, which processes nearly $10 trillion daily, this is a tiny fraction.
The system allows large multinational corporations and other wholesale payment customers to transfer dollars or euros to various JPMorgan accounts worldwide using blockchain technology, instead of traditional payment systems. JPM Coin payments are made continuously, unlike traditional transactions, which are typically processed only during business hours.
Basak Toprak, head of JPMorgan’s Coin Systems business in Europe, Middle East and Africa, said:
“Paying at the right time is beneficial. This could mean they could earn more interest income on their deposits.”
He also added that corporations could use the system to better manage liquidity, such as by triggering payments before they mature.
The SEC recently fined JPMorgan for accidentally removing old letters, but the bank agreed to settle with and pay a $4 million fine.