According to the source on September 7, JP Morgan Chase & Co. may soon launch a new blockchain-based digital deposit coin.
JP Morgan Chase & Co.
The new token would make cross-border payments and settlements speedier.
According to unnamed sources familiar with the topic, JP Morgan has purportedly constructed the infrastructure required to process token transactions.
JP Morgan has not yet begun the process of creating the token since it would require clearance from US regulators, which the business has not yet begun.
According to souce, a JP Morgan spokeswoman stated that the bank recognises authorities’ “thoughtful and diligent” approach to approvals.
Nonetheless, JP Morgan may unveil the cryptocurrency and begin offering it to clients within a year after regulatory approval.
JPM Coin is the same
The intended coin appears to be comparable to the company’s existing JPM Coin in several ways.
According to reports, the impending deposit tokens reflect consumer deposits and are transported by blockchain railways.
JP Morgan’s website portrays JPM Coin as reflecting dollars “held on deposit” and circulating on the company’s distributed ledger, which is also referred to as a blockchain elsewhere on the page.
The new token, like JPM Coin, would be restricted to bank use rather than retail use, relying on know-your-customer (KYC) and compliance procedures.
JPM Coin in Several Aspects
The suggested deposit token, however, would differ from JPM Coin in several aspects. Notably, the new coin would enable funds to be transferred to other banks.
It also has the potential to be utilised to settle trades involving tokenized securities and financial instruments.
Furthermore, the new deposit token might be provided in currencies other than the US dollar – albeit JPM Coin already supports the euro this year.
From highlighted a previous comment by JP Morgan, which stated that it believes deposit tokens will become a “widely used form of money.” Deposit tokens were also used in one of the company’s 2022 experimental projects.
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