J.P. Morgan, the largest bank in the United States is planning to pilot its JPM coin by the end of 2019, and clients from the U.S., Europe, and Japan have shown great interest in JPM coin and its capabilities. Though J.P. Morgan hasn’t received any regulatory clarity, they expect that regulations will be in favor of JPM coin and trials are slated to begin by the end of the year. J.P.Morgan moves over $7 Trillion dollars a day across the world between top corporations and institutions.
For sharing value between institutions, JPM coin has potential to enable “instant delivery of bonds via blockchain.” J.P. Morgan representatives believe securities will become digital in 5-20 years.
In a recent interview, head of blockchain, Umar Farooq mentioned the fact that blockchain applications are endless. Since Facebook and other institutions have ventured in the cryptocurrency space, the possibilities have increased significantly. JPM has also recorded interest from users from around the world and most clients are interested in JPM’s ability to speed up bond and securities transactions.
In a recent development, J.P. Morgan announced that it would shut down its millennial-focused mobile banking app, FINN. Seen as a hybrid digital offering, app had a user-friendly front end and fun emojis, and also offered zero fees for its young users, but Finn customers will be ported over to Chase accounts on August 10.
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With this decision in place to remove Finn, it may have been to put more focus on a true digital asset.
JPM coin is scheduled to be a stablecoin. Akin to USDT and TUSD, its purpose is to maintain its value to the US Dollar and operate on a private blockchain called Quorum.
J.P. Morgan’s Chairman and CEO, Jamie Dimon, sees Bitcoin as volatile and unregulated and has never been a fan, but he understands the movement toward blockchain technology and its importance in record-keeping and remittance. The JPM coin, while not specifically targeting the volatile crypto trade market seems to be in direct competition with Ripple’s XRP.
Over 59 countries are currently using XRP for settling transactions and outward remittance. It’s interesting to note that XRP has been underperforming since Libra and JPM coin were announced. We will follow developments as they happen.
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