JPMorgan’s JPM Coin Expected to Handle $10B Daily Transactions
During an interview at the Singapore Fintech Festival, Umar Farooq, global head of financial institution payments at JPMorgan, expressed his optimism for the future of JPM coin. He believes that transactions with JPM coin could grow five to tenfold within the next year or two, potentially reaching $10 billion in daily transactions. According to Farooq, the bank really believes that JPM coin is going to start taking off.
JPM coin is described by JPMorgan as a permissioned system that serves as a payment rail and deposit account ledger, allowing clients to transfer U.S. dollars held on deposit with J.P. Morgan within the system. This facilitates liquidity funding and real-time payments.
Recent Developments
Jamie Dimon, chairman and CEO of JPMorgan Chase, explained that they use a blockchain network called Liink to enable banks to share complex information and move tokenized U.S. dollar deposits with JPM coin. In October, JPMorgan announced that JPM coin is being used to settle $1 billion daily and plans to expand its usage in the future.
Additionally, JPMorgan Chase recently launched a blockchain-based collateral settlement system, with Blackrock being the first client to use the Tokenized Collateral Network (TCN) for over-the-counter derivatives trade with Barclays Plc.
Hot Take
JPM Coin: A Game Changer in Digital Currency
JPMorgan’s ambitious plans for JPM coin reflect a growing confidence in digital currency’s potential. With its increasing usage and innovative applications like the blockchain-based collateral settlement system, it’s clear that JPM coin is poised to make a significant impact on the financial industry in the near future.
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