JPMorgan Chase tests its “JPM Coin” cryptocurrency in combination with corporate customers.
According to Bloomberg Japan’s study on Tuesday, Umar Farooq, Head of Digital Treasury Services and Blockchain’s investment bank, said clients would test the technology with the ultimate goal of speeding up operations such as corporate payments and bond transactions.
According to Bloomberg, the tests will eventually be performed on the premise of legislative approval.
First disclosed in February, JPM Coin originally operates on top of Quorum, the bank’s personal ethereum variant.
JPM Coin will function as a stablecoin, depositing fiat cash at the bank in exchange for the token, which can then be transferred via a permitted distributed ledger. The receiver can subsequently redeem JPMorgan’s money token.
Initially connected to the U.S. dollar, the coin should be expanded in time to other fiat currencies. Real-world tests were anticipated in “a few months,” as reported at the moment.
Discussing the state of growth of JPM Coin, Farooq informed Bloomberg in today’s article: “Technology is very nice, but licensing and authorization requires time. He said, as well as inter-firm remittances, that cryptocurrency could be used to settle bonds and commodity exchanges. Customers in areas including Europe, the US, and Japan have already shown interest, Farooq said. He wouldn’t name any businesses in the upcoming tests, the study says.
JPMorgan’s CEO Jamie Dimon has been outspoken in his criticism in the past about Bitcoin, but the company has never been one to shy away from the underlying technology of blockchain and distributed ledgers.