JPMorgan, which made headlines with its cryptocurrency announcement earlier this year, is expected to begin pilot testing of JPM Coin later this year. According to a Bloomberg report, the bank is seeing interest from its customers in US, Europe and Japan for the potential of its digital coin to speed up trading services.
Umar Farooq, head of digital treasury services and blockchain, told Bloomberg that JPM Coin could facilitate instant delivery of bonds over the blockchain. According to Umar, JPM Coin would allow traders to instantly deliver the securities in exchange for cash. The buyer can purchase JPM Coins in advance while the seller’s bonds are represented by tokens. The blockchain platform will then complete the transaction.
The JPM Coin is a stable coin with each coin redeemable with one US dollar. Built on Quorum (Ethereum’s enterprise-focused version), the coin is also expected to be compatible with other standard blockchain protocols.
Big firms are increasingly going the stablecoin route as their first initiative in the cryptocurrency space. Facebook Libra was the latest entrant in the stablecoin race.
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