JPMorgan Chase also plans to launch a retail version of the JPM Coin in the near future.

JPMorgan Chase has processed more than $1 billion in daily transactions through its digital asset, JPM Coin, solidifying its position as one of the most extensive traditional financial institutions using blockchain technology.

The bank has ambitious plans to expand its utilization further, said Takis Georgakopoulos, global head of payments, who also said the next stop would be a similar asset designed for retail investors.

“JPM Coin transactions are primarily conducted in U.S. dollars on a daily basis, but again, we intend to continue to expand this.”

JPMorgan's next focus: Retail investors

In an interview with Bloomberg TV, Georgakopoulos highlighted significant shortcomings of existing payment systems, such as slow speeds (including cut-off times) and delays in payments, especially cross-border payments.

He also talked about the inefficiencies when money and information flow separately, making it difficult to coordinate, change, understand, and most importantly, track.

The executive further noted that money is fungible, while personal activities are not, and went on to add,

"The reason we created JPMorgan Coin is that, in general, we are looking at digital currencies as a way to solve these problems. What we are doing with JPM Coin is the institutional side of that solution, working with companies that trust each other in a permissioned environment so that they can move money within their ecosystem 24/7."

While JPM Coin serves institutional needs for now, Georgakopoulos said the next step for the company will be to create a retail version of the asset to bring the same efficiencies to consumers.

He also stressed that central bank digital currencies (CBDCs) offer one way to achieve this, but highlighted the “potential” for banks to create commercial variants of such digital deposits, which function similarly to traditional deposits. However, because they use distributed ledger technology, they offer the same advantages, including 24/7 efficiency, cost-effectiveness, instant transactions and programmable payment methods.

JPMorgan’s Deposit Token

More than a month ago, JPMorgan Chase announced that it was exploring a new type of token to facilitate its cross-border payments and settlements. The new deposit token is expected to serve as a claim on deposits against commercial banks, which may initially be denominated in US dollars and then available in other fiat currencies.

However, the U.S. financial services giant clarified that it does not intend to use the token as a replacement for stablecoins or to purchase cryptocurrencies. #摩根大通  #摩根币