• JPMorgan has deployed its blockchain-based payment system, JPM Coin, to introduce euro-denominated payments for corporate clients.
• German conglomerate Siemens was the first company to process euro-denominated payments using JPM Coin.
• JPMorgan launched Onyx in 2020, aiming to improve the quality of wholesale payment transactions.
JPMorgan Bank Deploys JPM Coin
JPMorgan, a United States based investment bank, has recently implemented one of its major blockchain projects into traditional banking by deploying its blockchain-based payment system, JPM Coin. The system enables wholesale payments for clients and was successfully used by German conglomerate Siemens for euro denominated payments.
JPM Coin Improves Traditional Banking Transactions
The JPM Coin platform significantly improves the traditional banking transactions which are usually only processed during business hours. By paying at the right time, customers can earn more interest income on their deposits. Since its launch in 2019, JPMorgan has reportedly processed around $300 billion of transactions in JPM Coin and is yet to scale it as its daily payments volumes amount to roughly $10 trillion.
Onyx Platform Launched
JPMorgan’s blockchain platform Onyx was launched in 2020 with an aim to improve the quality of wholesale payment transactions. As per April 2023 reports, the bank had already processed nearly $700 billion in short term loan transactions via Onyx.
SEC Fines JPMorgan
This news comes amid JPMorgan reportedly being fined $4 million by U.S Securities and Exchange Commission for mismanagement of internal communications as they mistakenly deleted about 47 million emails of their retail banking group dated from Jan 1st 2018 – April 23rd 2018 which violated US securities laws..
Conclusion
JPMorgan’s deployment of JP Morgan coin is set to drastically improve traditional banking services with cost benefits such as earning more interest income on deposits and faster processing times that occur 24/7 compared to regular business hours . Despite this success , there have been some issues that have arisen such as SEC fining them for deleting emails violating US securities law but overall , this new development looks promising .