The American Investment Bank; JPMorgan is expanding the implementation of one of its main blockchain projects to traditional banking.
JPMorgan has deployed its blockchain-based payments system, JPM Coin, to introduce euro-denominated payments for corporate clients, according to reported Bloomberg on June 23. A JPMorgan spokesperson confirmed to Cointelegraph that the bank had extended the JPM Coin blockchain platform from US dollars to euros.
According to Basak Toprak, Head of Currency Systems at JPMorgan for Europe, the Middle East and Africa, JPM Coin went live with euro transactions on June 21. According to Toprak, the German conglomerate Siemens made the first payment in euros on the platform.
The system allows bulk payments for clients, including large multinational companies, to transfer euros to and from their JPMorgan accounts instantly, 24/7. This significantly improves traditional banking transactions, which are typically only processed during business hours.
“Paying on time has economic advantages,” says JPMorgan’s Toprak. “This could mean they could get more interest income from their deposits,” he added.
Released in 2019, JPM Coin is a real-time application that aims to provide an alternative payment lane that runs on the blockchain. Since its launch, JPMorgan has processed around $300 billion of transactions in JPM Coin. The bank has yet to expand the system, as its total volume of daily payments amounts to about $10 trillion.
JPM Coin is part of JPMorgan’s blockchain-based platform known as Onyx Coin Systems. As we told you before, JPMorgan launched Onyx in 2020, with the aim of improving the quality of wholesale payment transactions. According to various reports, the bank processed nearly $700 billion in short-term loan transactions through Onyx through April 2023.
The news comes amid a supposed penalty fee of USD 4 million to JPMorgan by the United States Securities and Exchange Commission for mismanagement of internal communications. In 2019, the bank mistakenly deleted some 47 million emails from its retail banking group dated between January 1 and April 23, 2018. Under US securities laws, financial firms must retain business records for three years.
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