JPM Coin, the digital currency of banking giant JPMorgan Chase, is now live after months of development
JPMorgan Chase, one of the largest banks in the US and the world, announced the launch of its JPM coin yesterday. Takis Georgakopoulos, global head of wholesale payments at JPMorgan, announced that the bank believes the hype surrounding blockchain technology has exceeded inflated expectations and that it is now an economically viable product.
The bank director announced that the JPM coin is now live as a major tech company will be using it for global payments starting this week. This is the first time JPMorgan has used its coin commercially.
JPMorgan first announced its intention to launch a digital currency in February 2019. According to the press release, the JPM coin will use blockchain technology to facilitate the transfer of payments between banks and other institutional clients. The digital currency is different from other cryptos like Bitcoin. Additionally, JPM Coin represents the 1: 1 ratio of fiat currency held by the bank. The coin is now live and will be used for the first time this week.
JPMorgan invites banks and fintechs to build on its blockchain network
The banking giant believes that blockchain technology has become an economically viable product. For this reason JPMorgan created a division with over 100 employees. Georgakopoulos stated, “We are introducing onyx because we believe we are moving to a phase of commercializing these technologies and moving from research and development to something that can become real business.”
The bank is now inviting other banks and fintech companies to build on their revamped blockchain network. Christine Moy, director of JPMorgan’s Liink banking network, said the Liink network can serve as the foundation for a corporate mainnet.
The Liink network is based on a fork of Ethereum. Moy added that it currently functions more like a decentralized network than a centralized command product. Moy is now inviting over 400 financial institutions (including 25 of the 50 largest banks) to use their Liink blockchain network to build their digital infrastructure.
The bank director stated that Liink participants could create applications on the network. This way they can highlight their local expertise with global reach. “For example, if a Liink participant has specific expertise in relation to payments in a particular region or currency, they have the option to build an application and deploy it on Liink to make it available to the network,” she added.
JPMorgan and its executives were previously critical of Bitcoin and the crypto space. However, the bank has changed its stance in recent years and is launching products in the crypto and blockchain space.