JPMorgan Processes $1 Billion Daily Through JPM Coin Payment System
JPMorgan’s global head of payments, Takis Georgakopoulos, has revealed that the company processes a substantial daily volume through its JPM Coin payment system. In an interview with Bloomberg Television, Georgakopoulos stated that JPM Coin moves $1 billion every day for several large companies. While this represents a small fraction of JPMorgan’s total daily payments, which amount to $10 trillion, it highlights the significant traction gained by JPM Coin in recent months. Since its launch in 2020, JPM Coin has reportedly processed over $300 billion in transactions.
The initial version of JPM Coin only supported U.S. dollars but expanded to include euros in June 2023. However, the retail version of JPM Coin is not yet available to consumers. Currently, only wholesale or corporate clients can transact using the system. The plan is to develop a retail version that brings the same efficiency to consumers.
JPM Coin: A Blockchain-Based Payment System
JPM Coin operates as a permissioned blockchain-based payment system that allows JPMorgan’s wholesale clients to transfer U.S. dollars and euros. It operates 24/7 and facilitates faster transactions, enabling clients to initiate payments just before they are due and improving liquidity management.
Partior: JPMorgan’s Inter-Bank Settlement and Clearing System
JPMorgan is also involved in a project called Partior, which aims to improve cross-border payments through an inter-bank settlement and clearing system. Founded in 2021 by JPMorgan, DBS, and Temasek Holdings, Partior gained Standard Chartered as a founding shareholder after the bank made an undisclosed investment.
Hot Take: JPM Coin’s Growing Influence in the Payments Industry
JPMorgan’s revelation about processing $1 billion daily through JPM Coin highlights the increasing adoption and success of the bank’s payment system. While it currently serves wholesale clients, plans to expand to retail consumers indicate a broader application for JPM Coin in the future. With its efficient blockchain-based infrastructure, JPM Coin offers faster transactions and improved liquidity management. Furthermore, JPMorgan’s involvement in projects like Partior demonstrates its commitment to enhancing cross-border payments. As digital currencies continue to shape the financial landscape, JPM Coin positions itself as a significant player in the evolving payments industry.
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